A promotional image of LocknLock products / Courtesy of LocknLock

The stock price of LocknLock has soared by 6.11 percent on Thursday's trading session, as Affinity Equity Partners has initiated a public tender offer on the company.

According to the Korea Exchange, the stock price of the food container manufacturing business ended at 8,680 won ($6.31), which is close to the Hong Kong-based private equity firm's tender offer price of 8,750 won.

Affinity has launched the tender offer on the company from Thursday, aiming to acquire the remaining 30.33 percent stake of LocknLock, of which the private equity firm already holds a 69 percent stake.

The tender offer aims to acquire approximately 13.1 million common shares, or 30.33 percent stake of LocknLock, over a period of 27 days until May 14. The tender offer price is set at the price of 8,750 won per share, amounting to 114.9 billion won in total. NH Investment & Securities serves as the lead underwriter for the public tender offer.

Affinity plans to purchase all tendered shares during the offer period, regardless of the final subscription rate, and the purchase price will be settled in cash. The private equity firm is expected to voluntarily delist LocknLock after securing full ownership through the tender offer.

"We initiate the public tender offer with an aim to swiftly delist the firm from the stock markets voluntarily and privatize the company by integrating it into a wholly-owned subsidiary of the acquirer or its affiliates," reads the public tender offer statement.

Founded in 1978, LocknLock has grown into a successful corporation, mainly propelled by the huge popularity of its four-sided locking airtight containers and kitchenware products. In 2017, Affinity acquired the 63.56 percent stake at the price of 18,000 won per share from the firm's founder and chairman, Kim Jun-il, becoming the largest shareholder.

However, the stock price has been steadily decreasing since Affinity's acquisition due to heightened competition with lower-cost latecomers. Considering the low technological barriers of the firm's main product line, the outlook remains murky. LocknLock posted an annual revenue of 484.7 billion won in 2023, a seven percent drop from the previous year. The firm also logged its first operating loss of 21.1 billion won in 18 years since 2005.

Meanwhile, LocknLock's sudden stock price surge of 11.6 percent during the previous trading session, coupled with more than 12-fold trading volume than usual, sparked suspicions that the information on the tender offer has improperly been leaked in advance.