(Youngone Corp.)
(Youngone Corp.)

Youngone Corp. has increased its stake in Swiss bicycle maker Scott Sports, bringing its ownership to near full control following an arbitration ruling.

In a regulatory filing on Thursday, the Korean apparel group stated that it now holds 12,088,750 shares, representing 96.71 percent of Scott’s outstanding shares.

The additional stake was acquired from former second-largest shareholder Beat Zaugg under a decision by the International Chamber of Commerce arbitration panel.

Under the ruling, Youngone agreed to acquire all 5,837,500 shares held by Beat Zaugg for a maximum of 35.34 billion won ($25.6 million), based on the applicable Swiss franc exchange rate as of Wednesday.

Youngone will immediately pay 75 percent, or about 26.5 billion won, to Zaugg, with the remaining 25 percent to be settled depending on conditions set out in the arbitration decision.

Youngone had previously acquired a 50.1 percent stake in Scott from Zaugg and entered into a shareholders’ agreement. In September 2022, the company filed for arbitration with the ICC, alleging that Zaugg had breached the contract.

The arbitration panel ruled in Youngone’s favor, finding that Zaugg had violated the agreement. It ordered him to compensate the Korean group for damages.


minmin@heraldcorp.com