Fronics, a subsidiary of iWin and iWinPlus, has succeeded in attracting equity investment from Amore Pacific Group (hereinafter referred to as Amore Group). Accordingly, Fronics is ​​expected to be incorporated as an 'affiliate' of Amore Group.

According to the investment banking (IB) industry on the 2nd, Amore Group completed the payment of capital on the same day and acquired a 10% stake in Fronics. The acquired stake corresponds to the issuance of new shares through Fronics capital increase. Accordingly, Amore Group has added its name to the list of major shareholders following iWin and iWinPlus, the existing major shareholders of Fronics.

At the same time, Fronics is ​​expected to be incorporated as an affiliate of Amore Group. Normally, an affiliate must have a stake of 20% or more in an investee company for accounting purposes. However, if the parent company is recognized as having significant influence over the investee company, it is classified as an affiliate even if its stake is less than 20%. Significant influence is recognized when there is a decision-making authority of the board of directors or a 'significant transaction' between the company and the investee.

Amore Pacific Group has already signed an 'exclusive contract' with Fronics for micro LED Surface Lighting masks. The contract was originally set to last for two years, but this equity investment has extended it to 2030. In addition, Fronics is likely to supply Amore Pacific Group with new products that it will introduce next year.

Fronics is engaged in the business of manufacturing beauty devices using 'micro LED' technology. Fronics micro LED mask, which was released this year, is characterized by being manufactured in the form of Surface Lighting, maximizing skin regeneration and whitening effects compared to competing products.

Existing LED mask products were unable to implement Surface Lighting because they used mini LEDs that belong to liquid crystal display (LCD) panels. There was a problem that they could not adhere to the skin and did not reach the dermis layer with sufficient light. On the other hand, the company explains that this new product uses 3,770 micro LEDs to implement perfect Surface Lighting, allowing it to adhere flexibly to the skin.

The new product will be distributed through Pacific Tech, a beauty device subsidiary of Amore Pacific Group.

There are also expectations that Amore Group will incorporate Fronics as an affiliate in the future. There is a possibility that Amore Group will additionally purchase the shares held by iWin and iWin Plus, the existing major shareholders of Fronics.

A market official said, "If iWin and iWin Plus sell their shares in Fronics, I understand that Amore Group has also demanded the right of first negotiation to ask for the intention to acquire them first."

Seol Dong-hyeop, Money Today Broadcasting MTN Reporter