What’s Happening? Flask Pursues Management Rights Sale

Flask’s largest shareholder, B&M Holdings, announced on August 20, 2025, that it would pursue a public bidding process for the sale of its management rights. The goal is to complete the sale within six months, transferring management control through the sale of existing shares.

Why the Sale? Difficult Business Environment and Delisting Threat

Flask has recently experienced a sharp decline in sales in its construction business due to the downturn in the real estate market. Growth in its IT business segment is also limited, and its financial structure has deteriorated, leading to a delisting decision on July 14, 2025. The management sale appears to be a last-ditch effort to overcome this crisis.

So What? Analyzing the Potential Impacts

  • Positive Impacts: Potential for business normalization and expansion under new management.
  • Negative Impacts: Increased uncertainty due to the delisting decision, possibility of sale failure, and continued deterioration of financial structure.

Macroeconomic factors such as rising interest rates could also negatively impact Flask’s sale process.

What Should Investors Do? Investment Strategy

The current investment recommendation for Flask is ‘Sell.’ New investments should be approached with extreme caution, and existing investors should carefully consider the possibility of recovering their investments. It’s crucial to continuously monitor the progress of the sale, the emergence of potential buyers, and the sale price and conditions.