Chungho ComNet Co., Ltd. (KOSE:A012600) signed a contract to acquire remaining 85% in Sewon Co., Ltd. from IMAGINE ASIA Co.,Ltd. (KOSDAQ:A036260) for KRW 17.2 billion on November 2, 2018. As per terms, remaining 0.24 million shares will be acquired for cash. As per terms, 0.07 million shares will be acquired on November 2, 2018, 0.08 million shares will be acquired by November 30, 2018 and remaining 0.09 million shares until December 21, 2018. Out of the consideration, a deposit of KRW 5 billion will be paid as deposit on November 2, 2018, second payment of KRW 6 billion until November 30, 2018 and balance KRW 6.2 billion on December 21, 2018. As of December 21, 2018, the balance KRW 6.2 billion will be received on December 28, 2018. Upon completion, Chungho ComNet Co., Ltd.'s stake in Sewon Co., Ltd. will increase from 15% to 100%. For the year ended December 31, 2017, Sewon Co., Ltd. reported total assets of KRW 20.1 billion, net assets of KRW 8.6 billion, sales of KRW 27.1 billion and net profit of KRW 2.1 billion. The Board of Directors of Chungho ComNet Co., Ltd. resolved the deal on November 2, 2018. The deal is expected to close on December 21, 2018. As of December 21, 2018 the transaction is expected to complete on December 28, 2018. Lian Accounting Corporation acted as external rating institution. Deloitte Anjin LLC acted as external rating institution for the transaction.

Chungho ComNet Co., Ltd. (KOSE:A012600) completed the acquisition of remaining 85% in Sewon Co., Ltd. from IMAGINE ASIA Co.,Ltd. (KOSDAQ:A036260) on December 28, 2018.