1. Hyundae Saryo’s Takeover Bid: What’s Happening?

Hyundae Saryo has decided to sell a portion of its majority shareholder’s stake through a public bidding process to improve management transparency and corporate governance. The advisory contract was signed on August 26, 2025, with the aim to complete the sale within six months, by February 26, 2026. However, the ongoing legal proceedings and seizure of some shares held by the majority shareholder add uncertainty to the process.

2. Why the Change in Majority Shareholder?

Following past audit failures, Hyundae Saryo was designated as a 관리종목 (managed item) and trading was suspended. The Korea Exchange (KRX) voted for delisting on August 4, 2025. The company is pursuing this change to address the delisting risk, attract new investment, and normalize management. Following its exit from the bio business, the company is focusing on its compound feed business and exploring new growth engines.

3. Potential Impact of the Takeover

Potential Upsides

  • New investment and improved management efficiency
  • Enhanced corporate governance and transparency
  • Stable revenue base from the compound feed business

Potential Downsides

  • Delisting risk
  • Uncertainty surrounding the sale process (potential delays or failure)
  • Limited growth potential and low ROE of the compound feed business
  • Potential decline in profitability due to raw material price and exchange rate fluctuations

4. Investor Action Plan

Short-Term Strategy

  • Closely monitor news regarding delisting and the outcome of the appeal
  • Gather information on the sale process (advisors, potential bidders)
  • Manage risk related to increased stock price volatility

Long-Term Strategy

  • Confirm resolution of the delisting risk
  • Evaluate the new majority shareholder’s business vision and specific plans
  • Analyze potential synergy effects with the acquiring entity
  • Assess improvements in financial structure and profitability