RNTwo Technology announced on the 3rd the disposal of its 100% stake in Apex Investment for 5.5 billion won, resulting in a 4.5 billion won loss within approximately one year of the original 10 billion won acquisition. The company received 550 million won as down payment, with the remaining 4.95 billion won due on September 3. Performance deterioration drove the decision, as Apex Investment recorded 800 million won in net losses by year-end last year and an additional 1 billion won net loss in Q1 this year. The disposal occurs amid unclear fund flows through two investment partnerships that held most of Apex Investment's capital.
RNTwo Technology Acquired Apex Investment for 10 Billion Won in July Last Year
According to the Financial Supervisory Service's electronic disclosure system on the 6th, RNTwo Technology disclosed on the 3rd the disposal of 100% of Apex Investment shares for 5.5 billion won. The company received 550 million won as down payment, with the remaining 4.95 billion won scheduled for payment on September 3 to complete the transaction.
Apex Investment is a new technology finance company. RNTwo Technology acquired 100% of Apex Investment's existing shares for 10 billion won in July last year. In 2024, Apex Investment recorded 4 billion won in revenue and 1.9 billion won in net profit. Total capital stood at 8.75 billion won.
Investment Partnerships Controlled Majority of Apex Investment Capital
After acquiring Apex Investment, RNTwo Technology acquired 99.1% and 91.7% stakes in MJP Investment Partnership No. 1 and MAH Partnership respectively. Most of the capital was invested in these two partnerships.
With these invested funds, RNTwo Technology attempted to acquire its own convertible bonds. In October last year, RNTwo Technology selected MJP Investment Partnership No. 1 as the target for issuing 10 billion won worth of 7th convertible bonds. This created an unusual circular structure where RNTwo Technology's grandchild company would acquire RNTwo Technology's convertible bonds. Eventually, RNTwo Technology changed the target to Baro Savings Bank and reduced the amount to 6 billion won.
RNTwo Technology later utilized these partnerships to acquire another KOSDAQ-listed company, RNTX. In December last year, RNTwo Technology signed a contract to acquire 28.32% stake from iWin, RNTX's former largest shareholder, at 1,800 won per share for a total of 16.6 billion won. RNTwo Technology agreed to pay 6 billion won, with the two partnerships each contributing 5.3 billion won.
The contract structure changed on January 9 when the final payment schedule was delayed. RNTwo Technology agreed to invest 14.5 billion won, with the two partnerships each investing 1 billion won. This transaction was completed on January 23, and RNTX's largest shareholder changed to RNTwo Technology.
RNTwo Technology did not disclose these two partnerships as joint holders. When becoming the largest shareholder of a listed company, a large shareholding status report must be disclosed. At that time, specially related parties are also reported jointly. This is because the stock trading of the largest shareholder and related parties can affect stock prices. Since RNTwo Technology did not jointly report these partnerships, the market cannot access information about these partnerships' share trading.
Apex Investment Recorded Consecutive Quarterly Losses
As of the end of last year, Apex Investment recorded 800 million won in net losses. Including amortization of goodwill, a total of 2.7 billion won was reflected as impairment losses. In Q1 this year, Apex Investment recorded 1 billion won in net losses.
RNTwo Technology did not respond to multiple contact attempts regarding the reasons for Apex Investment's losses and the rationale for selling at 4.5 billion won less after one year.
FAQ
Q: What amount did RNTwo Technology receive as down payment for the Apex Investment disposal?
A: RNTwo Technology received 550 million won as down payment, with the remaining 4.95 billion won scheduled for payment on September 3.
Q: What were Apex Investment's financial results in 2024?
A: In 2024, Apex Investment recorded 4 billion won in revenue and 1.9 billion won in net profit, with total capital of 8.75 billion won.
