Reuters: Private Equity: Hi-Mart avoids delisting, to seek stake sale by end-June

Reuters: Private Equity Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Hi-Mart avoids delisting, to seek stake sale by end-June Apr 30th 2012, 06:24 SEOUL, April 30 | Mon Apr 30, 2012 2:24am EDT SEOUL, April 30 (Reuters) - South Korean electronics retailer Hi-Mart has avoided delisting but needs to complete stake sales by its top shareholders and enhance management transparency in the wake of its top executives being charged in a $228 million embezzlement case, the Korea Exchange said. The stock exchange had suspended trade of Hi-Mart shares on April 16 to review the company for a possible delisting as its former chief and vice president were charged by prosecutors for neglecting their duties and embezzlement totaling 259 billion won ($228 million). Sun Jong-koo was dismissed from the CEO role last week. "The exchange decided not to review delisting of Hi-Mart as the firm disclosed embezzlement charges by its management and it has since offered measures to improve transparency including appointments of additional external board of directors and pledges by the current management to leave the company," the exchange said in a statement. The financial scandal, which erupted in February, comes as Hi-Mart's top shareholders including Sun were planning to sell a 57.6 percent stake in the company, worth about $780 million. Sun holds a 17.37 percent stake in the company. Other stakeholders planning to exit included conglomerate Eugene Group, with 31.34 percent, and private equity firm H&Q, with 8.88 percent. The Korea Exchange said Hi-Mart pledged to name a new chief executive in charge of operation this week. Yu Kyung-sun, its co-CEO in charge of finance and also chairman of Eugene Group, will also resign after completing the sale of the stake. Should the stake sale fail to be signed by the end of June, Yu will be replaced by new management, the exchange said. Shares of Hi-Mart will resume trading from Wednesday. ($1 = 1135.1500 Korean won) (Reporting by Miyoung Kim; Editing by Muralikumar Anantharaman) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions