Advanced Digital Chips Inc. (KOSDAQ:A054630) agreed to acquire remaining 38.95% stake in KNC Korea Co., Ltd from Gun-Hee Bae and Geum-Jung Lee for KRW 1.3 billion in cash on December 8, 2015. Advanced Digital Chips will acquire 0.47 million shares of KNC Korea Co., Ltd. Gun-Hee Bae will sell 0.35 million shares amounting to 29.31% stake for KRW 960.14 million and Geum-Jung Lee will sell 0.12 million shares amounting to 9.64% stake for KRW 315.86 million. After the transaction, Advanced Digital Chips will hold 100% stake in KNC Korea Co., Ltd. Advanced Digital Chips Inc. will fund the transaction through issuance of convertible bonds and operating funds.

KNC Korea Co., Ltd reported total assets of KRW 7.45 billion, total liabilities of KRW 5.67 billion, total capital of KRW 1.78 billion, capital of KRW 600 million, sales of KRW 6.71 billion and net profit of KRW 375 million as at September 30, 2015. The Board of Directors of Advanced Digital Chips Inc. passed a resolution for the transaction on December 8, 2015. The transaction is expected to complete on January 15, 2016. Jung Hyeon Accounting Corporation acted as the external valuation institution.

Advanced Digital Chips Inc. (KOSDAQ:A054630) completed the acquisition of remaining 38.95% stake in KNC Korea Co., Ltd from Gun-Hee Bae and Geum-Jung Lee on January 4, 2016.