MBK Partners plans to exit outdoor brand NEPA by declining its allocation in a shareholder-assigned rights offering and selling its existing shares to K2 Korea Group after the capital increase. K2 Korea Group will acquire all of MBK’s forfeited new shares and become NEPA’s largest shareholder, with K2 Corporation, Eider and K2 Safety previously designated to take 50%, 30% and 20% of the new issuance. The issue price and size will be set after NEPA’s board resolution. Proceeds will be used to reduce borrowings and financing costs and fund product development, design research and development, and marketing. The old-share sale is being discussed at a valuation slightly above K2 Korea Group’s 2023 valuation. K2 provided 180 billion won for refinancing NEPA’s acquisition debt in 2023, securing 1,486,808 shares, or 88.7%, and key assets including trademarks as collateral. The transaction is expected to resolve the related debt obligations. MBK acquired 94.2% of NEPA for about 997 billion won in 2013; NEPA’s sales and operating profit have since fallen from more than 430 billion won and 110 billion won to 288.8 billion won in consolidated sales and a 2.1 billion won operating loss last year.