IGIS Asset halts sale process of controlling stake

Key shareholders of South Korea’s IGIS Asset Management Co., one of the largest real estate firms in Asia, have decided to halt the process of selling the stake they own with a control premium and will prioritize the company’s operational stability, Senior Managing Partner Cho Kab-Joo said on Tuesday.  

"The bereaved family members (of IGIS' late founder Kim Dai-young) have sought the opinion of external advisors regarding the sale of their shares. But given the current market conditions and the firm’s business, they have decided not to proceed (with the sale process) and have agreed to focus on the stabilization of the company,” Cho said in his email sent to IGIS employees on March 5.

The key shareholders – Son Hwa-ja, the late founder’s wife holding 12.4%, and Cho, who owns 11% – had considered selling their stake with a control premium, hoping for IGIS’ corporate value of more than 800 billion won ($601.7 million), The Korea Economic Daily reported last week.

However, there was no legal agreement between the bereaved family and Cho to jointly sell their shares, he added in the email.

He hinted at the possibility of investment attraction to improve IGIS’ corporate governance.

“I hope that IGIS will grow as a global company that continuously creates value, contributing to our society and customers. If this journey requires a better alternative to the current governance, by attracting investors who can make a better investment environment, I am prepared to review such options,” Cho said.

“The standard for any decision should be that it is a better option for investors and employees, and I will not make decisions that are not in the interest of them. Therefore, I kindly ask each of the employees to do their best in their respective roles,” Cho added.

Cho’s message is understood as an effort to keep employees from leaving the company in anticipation of a sale, according to sources familiar with the matter. It is expected that the sale would face obstacles if the company loses key personnel while real estate market conditions are deteriorating.

Write to Byeong-Hwa Ryu at hwahwa@hankyung.com

Jihyun Kim edited this article.