Woongjin Co. saw its shares skyrocket by nearly 28 percent on Wednesday morning after announcing that its subsidiary had acquired South Korea’s largest funeral service provider.

Woongjin shares were trading at 1,385 won ($0.97) as of 10:15 a.m. on Wednesday, up 27.89 percent from the previous session.

The company disclosed on Tuesday that its subsidiary WJ Life signed a deal to purchase a 99.77 percent stake in Preed Life Co. for 883 billion won ($618 million). As of the end of 2024, Preed Life held 2.56 trillion won in advance payments.

Woongjin said the acquisition is part of a diversification strategy beyond its core education portfolio, which faces headwinds from declining birth rates. The acquisition is also expected to be backed by asset resources, perpetual bond issuance, and acquisition financing without a rights offering.

Woongjin shares closed at 1,407 won.

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