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Photo: Youngone Corporation |
[Alpha Biz= Kim Jisun] SEOUL, South Korea — Youngone Corporation, a global premier outdoor and athletic apparel manufacturer, has significantly strengthened its control over Scott Corporation (SCOTT) by acquiring additional shares following a successful legal battle at the International Chamber of Commerce (ICC).
Consolidating Financial Support Youngone recently disclosed an increase in its loan limit for Scott to 170 million Swiss Francs (CHF) (approx. 314.3 billion KRW). While extending the maturity of the existing 150 million CHF loan to December 2026, the company added a fresh facility of 20 million CHF. Unlike previous annual maturity extensions, this year’s move includes a capital increase intended to be executed on an as-needed basis to support Scott’s operational stability.
Legal Victory and Strategic Acquisition The expansion follows a major legal victory against Scott’s founder and second-largest shareholder, Beat Zaugg. Youngone acquired Zaugg’s entire holding of 5.83 million shares for 19.08 million CHF (approx. 35.3 billion KRW), a move made possible by a favorable ICC arbitration ruling in February.
Youngone initiated the arbitration in September 2022, citing Zaugg’s significant breaches of a shareholders' agreement established during the 2015 acquisition of Scott’s management rights. The ICC tribunal recognized Zaugg’s serious breach of contract, allowing Youngone to exercise its call option (right of first refusal) to purchase his remaining shares.
Complete Management Control With this acquisition, Youngone’s stake in Scott has surged to 96.71%, effectively granting the company total control over the global bicycle and sporting goods brand. Notably, the acquisition price per share was approximately 6,048 KRW, a sharp decline from the 28,933 KRW per share Youngone paid during its previous stake increase in 2015.
Youngone has already paid 75% of the acquisition price to Zaugg, with the remainder to be settled following further arbitration procedures. Additionally, the company is set to receive damages from Zaugg for his breach of contract.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
