Institutions who invested in CBs last year turn watchful on EcoPro woes

2022.02.04 13:45:08 | 2022.02.04 13:46:28

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Institutions are closely watching the probe on EcoPro BM, No .2 Kosdaq stock and its holding company EcoPro, to deliberate actions upon findings on insider trade and management fault behind a fire at production plant.

The parent of battery materials maker in July last year sold 150 billion won ($125 million) in convertible bonds to institutions ahead of rights offering by EcoPro BM. The rights offering has been delayed.

EcoPro chairman Lee Dong-chae and several executive members are under investigation by financial and law enforcement authorities on charges of insider trading.

As many as 10 private equity funds as well as state-run Korea Development Bank have invested in the CBs. The buyers can convert the bonds to stocks at preset price of 64,300 won per share in July. After sinking to 58,000 won, shares of EcoPro rebounded to 71,000 won Friday.

By Cho Yoon-hee and Jenny Lee

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