SC Engineering Co., Ltd (KOSE:A023960) entered into a letter of intent to acquire 51% stake inCellontech Co., Ltd. from SEWONCELLONTECH Co., Ltd. (KOSE:A091090) for KRW 17.136 billion of June 4, 2021. After the acquisition SEWON will own 0.98 million shares in Cellontech. KRW 1.7 billion won will be replaced with due diligence deposit received at the time of signing the basic agreement for stock transfer.

KRW 10 billion offset by full acquisition of SC Engineering Co., Ltd's 10th convertible bond scheduled to be issued on August 19, 2021. The consideration amount will funded through holding cash and convertible bonds. Cellontech has a total asset of KRW 34.9 billion, total common equity of KRW 28.3 billion and Total debt of KRW 6.6 billion in 2020.

The transaction was resolved by the board of director of SEWONCELLONTECH on June 4, 2021. Board resolution date is August 17, 2021. The transaction is expected o close on September 30, 2021.