[비즈한국] The main bidding for the sale of Bucket Studio066410, the grand-parent company of Vidente121800—a KOSDAQ-listed firm and the second-largest shareholder of the cryptocurrency exchange Bithumb—is set to take place this week.
Vidente and Bucket Studio were forced into a sale after facing the threat of delisting due to judicial risks stemming from the embezzlement and breach of trust charges against Kang Jong-hyun, who has been accused of being the real owner of Bithumb. The investment banking (IB) industry believes that a change in Bithumb’s second-largest shareholder will either bring an end to the ongoing management disputes surrounding Bithumb or lead them into a new phase.
Is Vidente the Seed of Bithumb’s Management Dispute?
Vidente is a KOSDAQ-listed company engaged in the development, manufacturing, and sale of HD digital broadcasting equipment, while Bucket Studio is a media company specializing in content production. The two companies are not receiving attention because of their business areas, but rather because of the 30% stake in Bithumb held by Vidente.
Bucket Studio holds a governance structure that follows: Bucket Studio → Inbiogen101140 → Vidente → Bithumb Holdings → Bithumb. Specifically, Vidente is the second-largest shareholder, holding 30% of Bithumb Holdings, which is the major shareholder of Bithumb. Although Vidente was originally the largest shareholder of Bithumb Holdings, it was relegated to the second-largest shareholder earlier this year. Nevertheless, observers suggest that acquiring shares in Bucket Studio and Vidente could allow for "significant influence" over Bithumb’s management.
Both Bucket Studio and Vidente were owned by Kang Jong-hyun, who was embroiled in the Bithumb ownership controversy. Governance risks emerged as Kang faced trial for embezzlement, breach of trust, and fraudulent illegal transactions. Although his sister, Kang Ji-yeon, attempted to manage the situation by serving as both the CEO of Bucket Studio and the representative of the investment consortium, she ultimately decided to sell as the companies faced the threat of delisting.
The public bidding will proceed this week. It has been decided to conduct the merger and acquisition (M&A) in a way where the seller is not directly involved, and it is reported that over ten investors have shown significant interest by submitting Letters of Intent (LOI). The acquisition price is rumored to be around 200 billion won.
"Overvalued? Bithumb’s Management Rights Are Attractive"
Won Young-sik, the former chairman of Chorokbaem Group, who had attempted to take control of Bithumb in partnership with Kang Jong-hyun, has also distanced himself from Vidente. When the investigation into Kang began in 2023, Chorokbaem affiliates, which had mixed funds with Kang Ji-yeon-linked Bithumb affiliates, liquidated their stakes.
Former Chairman Won Young-sik appeared to be competing for Bithumb’s management rights through Kang Jong-hyun by holding a 6.39% stake in Vidente via his grandson company Chorokbaem Media047820 in 2022, and earlier in 2020, by owning a 24.8% stake in Vidente and approximately 13.8% of Kang Ji-yeon-linked Inbiogen. There was even speculation that Won was providing the "capital" to help Kang seize control of Bithumb. However, once the controversy surrounding Kang surfaced, Won gradually sold his related shares, effectively exiting by February 2023 when he sold his entire remaining stake.
In the meantime, Bithumb has solidified the governance structure of Lee Jung-hoon, the former chairman of the board of Bithumb Holdings. Last April, Bithumb exercised a call option on 4.22% of Bithumb Holdings shares held by Vidente through Bithumb subsidiary Bithumb Partners. Thanks to this, DAA, the second-largest shareholder, solidified its position as the largest shareholder, further strengthening the influence of Lee’s side.
However, the complex governance structure of Bithumb Holdings remains a variable. Shares of "SG BRAIN TECHNOLOGY CONSULTING PTE.LTD. (SGBK)," which sits at the top of the governance structure, are divided between former Chairman Lee and BK Group CEO Kim Byung-gun at 50% and 49.99%, respectively. As both sides have been locked in a long-standing legal battle, the possibility of management disputes remains.
While it is true that Lee's governance has become more stable, experts note that Vidente remains "highly attractive" because it offers a path to securing a 30% stake in Bithumb Holdings. An IB industry insider familiar with the bidding process hinted, "Although Vidente has stepped back and former Chairman Lee’s governance has been solidified, a closer look reveals it is still a complex structure where Lee holds management control. Depending on who acquires Vidente and Bucket Studio, the dispute could reignite," adding, "There is even talk that Lee is trying to acquire Vidente through someone he trusts."
Bithumb’s IPO Also a Variable
Bithumb’s planned IPO is another key variable. Bithumb has firmed up its IPO schedule, selected Samsung Securities016360 as its underwriter, and entered corporate due diligence. The goal is to submit a preliminary application to the Korea Exchange in January next year, file a securities registration statement by early March, and list on the KOSDAQ in April.
Stable performance is the driving force. Last year, Bithumb succeeded in a turnaround, recording 496.3 billion won in revenue, 130.7 billion won in operating profit, and 161.8 billion won in net profit. Its operating profit turned to a surplus, and net profit surged by 565% compared to the previous year.
An IB industry official assessed, "Just by holding Bithumb Holdings shares through Vidente, there is room to expect an increase in asset value upon Bithumb's listing. If former Chairman Lee’s side wishes, selling the stake held by Vidente in Bithumb Holdings could also be an option. While there is little room to participate in management disputes right now, I think many companies are showing interest because they judge it could be a 'trump card' for the future."