Dongwon Industries shares surge on potential acquisition of McDonald’s Korea

[Image source: McDonald’s Korea]

Dongwon Industries Co. shares surged nearly 20 percent to 53,600 won ($43) Monday morning on media reports that Dongwon Group led by the largest South Korean seafood company is bidding for McDonald’s Korea.

At 2:00 pm, the stock price lost some of its earlier gains to 47,400 won, up 5.33 percent, on profit-taking.

According to sources, Dongwon Industries, the holding company of Dongwon Group, was the sole bidder in the preliminary auction for the local hamburger chain last month. Sources said Dongwon Industries is negotiating with the selling party on the price after initial due diligence was conducted last week.

Dongwon Industries said in a regulatory filing earlier in the morning that it is reviewing a possible acquisition of McDonald’s Korea, but no specific decision has been made.