Cornerstone out of bidding competition for Bithumb
Cornerstone Networks said in a regulatory filing Monday that it will acquire 5G optical communications instrument manufacturer TDI, even though it originally attempted to expand to blockchain by appointing BK Group Chairman Kim Byung-kun as an internal director in September. Kim previously tried to acquire cryptocurrency exchange Bithumb. It seems as if Cornerstone is completely out of the running Bithumb. Cornerstone acquires a 5G company instead of Bithumb According to the regulatory filing, Cornerstone acquired 20,000 shares, or 100 percent, of TDI on Monday for a total of 24 billion won, or 1.2 million won per share. To pay for the acquisition, Cornerstone issued 24 billion-worth of convertible bonds to TDI shareholders. The convertible bonds have a five-year maturity, and no interest is paid to creditors. The conversion price is 1,054 won per share. TDI is a company that focuses on creating optical instruments, sensors and diagnostic systems using laser fiber-optic technology and has fiber-optic-specialized human resources. The Kosdaq exchange stopped the trading of TDI following the deal, and Cornerstone added 2.99 percent by the end of Monday on the secondary bourse. Cornerstone doesn’t have blockchain on its target list Cornerstone announced in June that it would hold a non-regular shareholder meeting to discuss the prospect of entering the blockchain business and appointing Kim as an internal director. After several schedule shifts, the company held a shareholder meeting in September and approved appointing Kim as a director, but it postponed the discussion on entering the blockchain industry to the next shareholder meeting. On Nov. 7, the company announced it will hold another non-regular shareholder meeting on Nov. 22 to appoint two more internal directors. The meeting has been postponed until Jan. 20. But even with this meeting, discussing the possibility of entering the blockchain business has not been included on the agenda. It is viewed that Cornerstone has given up on entering blockchain even though it appointed Kim as an internal director. Cornerstone owner Cho Yoon-hyung told some media outlets in September that he will jump into taking over Bithumb, but the acquisition of TDI shows that Cornerstone could have fully given up on the idea of buying the cryptocurrency exchange.