YSP, the largest shareholder of KOSPI-listed ANP, withdrew from a planned sale of the company's management rights on 27일, despite having reached terms with a willing buyer, according to capital market industry sources. The sale, which would have transferred approximately 50% of ANP's equity for 10 billion won, was intended to prevent the automotive parts manufacturer from delisting under stricter market capitalization rules that took effect 지난 1일. Industry analysts attribute the abrupt withdrawal to unfavorable deal economics: YSP would have incurred a net cost of 22 billion won to complete the transaction while losing control of profitable subsidiary Yongsan, whereas allowing delisting would preserve YSP's grip on Yongsan without additional cash outlay. ANP, listed since 1988 and trading on Korean stocks exchanges, faces imminent watchlist designation as its market capitalization of 19.4 billion won remains below the 30 billion won threshold, with potential delisting if the metric is not recovered within regulatory timelines. The withdrawal has prompted allegations of intentional delisting, though ANP declined to comment when contacted by Chosun Biz.
ANP Records Ninth Consecutive Year of Operating Losses
ANP, established in 1977 as Woojin Electronics Industry and listed on the KOSPI market in 1988, manufactures automotive printed circuit boards (PCBs) and recently expanded into automotive component production after acquiring a seat business division from YSP. The company recorded an operating loss of approximately 7.3 billion won on a consolidated basis 지난해, marking its ninth consecutive year of losses since 2017, according to the source article. The prolonged losses stem from rising PCB raw material costs and weak sales performance. ANP's share price declined from the 24,000 won range in 2016 to the low 400 won range currently, with its market capitalization falling to 19.4 billion won.
KOSPI Implements Stricter Delisting Rules from 지난 1일
Under enhanced listing regulations that took effect 지난 1일, KOSPI-listed companies are designated as watchlist stocks if their share price remains below 1,000 won for 30 consecutive trading days or if market capitalization falls below 30 billion won. Companies that fail to recover above these thresholds for 45 consecutive trading days within a subsequent 90-trading-day period face delisting. ANP's current market capitalization of 19.4 billion won places it at high risk of watchlist designation 다음 달 중순 if conditions persist, according to the source.
Cross-Shareholding Structure Links ANP and Yongsan Ownership
YSP holds a 12.12% voting stake in ANP as the largest shareholder, but ANP's unlisted subsidiary Yongsan owns a larger 34.62% equity position in ANP — more than double YSP's stake. However, ANP is simultaneously Yongsan's largest shareholder with approximately 40% ownership, creating a cross-shareholding arrangement that strips Yongsan of voting rights in ANP under Korean securities law. Yongsan, a tier-1 supplier to Hyundai Motor and Kia producing automotive seat covers and interior components, recorded an operating profit of 17.6 billion won 지난해 and is considered the group's most valuable asset.
The planned sale agreement included a condition requiring YSP to acquire ANP's approximately 40% stake in Yongsan for roughly 36 billion won to prevent the new ANP owner from gaining control of Yongsan. After deducting 23.8 billion won in existing loans and convertible bond investments that ANP owes Yongsan, YSP's net payment to ANP would have been 12.2 billion won. Subtracting the 10 billion won in proceeds from selling ANP equity, YSP would have paid a net 2.2 billion won to complete the transaction.
Industry Sources Cite Unfavorable Deal Economics as Withdrawal Rationale
"YSP appears to have recalculated the numbers during the sale process and realized the structure offered no advantage," a capital market industry source stated, according to the article. "By leaving ANP in a delisted state, YSP can maintain control over the profitable Yongsan without any cash outlay." The source noted that the sale proceeded smoothly with a willing buyer and negotiated terms before the abrupt withdrawal, with no indication that a competing bidder offered superior conditions. ANP has not disclosed plans following the sale withdrawal. When Chosun Biz contacted ANP for comment on the withdrawal circumstances and future strategy, the company responded that "the person in charge is unavailable and cannot provide an answer."
FAQ
What did YSP do on 27일 regarding the ANP sale?
YSP withdrew from a planned sale of approximately 50% of ANP's management rights for 10 billion won on 27일, despite having a willing buyer with negotiated terms, according to capital market industry sources cited by Chosun Biz.
Why did industry sources suggest YSP withdrew from the ANP sale?
Industry analysts attribute the withdrawal to unfavorable economics: YSP would have incurred a net cost of 2.2 billion won to complete the sale while losing control of profitable subsidiary Yongsan, whereas allowing ANP to delist would preserve YSP's control over Yongsan without cash outlay, according to the source article.
How does the new KOSPI delisting rule affect ANP?
Under rules effective 지난 1일, KOSPI companies with market capitalization below 30 billion won are designated as watchlist stocks and face delisting if they fail to recover above the threshold for 45 consecutive trading days within 90 trading days; ANP's current market cap of 19.4 billion won places it at high risk of watchlist designation 다음 달 중순, according to the source.
