BOF, will continue on as the leading management company.
The new entity will not issue any new shares and keep the share ratio at 1:0.
Synergies between the companies are expected to maximize goal achievements.
Asian cultural content company KEYEAST (054780) merged with its subsidiary company, BOF, on October 15, 2009.
BOF is the leading entertainment company focusing on management and promotions of actors and artists in several projects representing top talents such as, Bae Yong Joon, Lee Na Young, Choi Kang Hee, Park Ye Jin, Hong Suh Yeon, E Jiah and Bong Tae Gyu.
Recent projects over the past year have recorded over 180 billion won in net income for the management company.
* BOF Financial Status (Unit : 1 million won)
Assets Debt Net Assets Revenue Net Income
Based on audit report for 2008 11,957 10,382 1,575 17,988 122
Based on 1st half report for 2009 9,479 7,197 2,282 10,158 707
KEYEAST and BOF respectively, 3,545 won (par value 500 won) and 30,796 won (face value 10,000 won). The calculated merged share ratio has been rated at the price per share of 1:8.5722073.
KEYEAST retains 100% of shares of the merger without issuance of new shares at the ratio of 1:0.
KEYEAST President, Kim Ki Hong
“BOF’s management and KEYEAST’s dynamic culture/entertainment content business will power the new entity with a merging of its integrated management resources, more stable revenue and profitability, cross-sales network to maximize cooperation and create synergies.”
“The synergy of business and profit expansion is expected to lead to improved corporate value in enhancing the value for our shareholders.”
KEYEAST recently finished the successful merge with the Japanese company, Digital Adventure, in the first half of the year to secure a profit valuation of 95 billion won, published Bae Yong Joon’s photo-travel essay “Discovering the Beauty of Korea” and along with the Korea National Tourism Organization launched the OFFICIAL travel business of KeyToKorea with great interest and momentum.