Dasan Networks: "DTS Listing Is a Strategy for Independent Growth... Expanding Shareholder Returns Also Planned"

As Dasan Networks is moving forward with the listing of its subsidiary DTS, a manufacturer of air-cooled heat exchangers, on the KOSDAQ market, the company has issued an official statement addressing concerns in the market about the potential risks of duplicate listings between parent and subsidiary companies, and has announced plans to strengthen its shareholder return policy.

On June 10, Dasan Networks explained that the DTS listing is not a simple case of a "split-off listing," but rather a strategic decision aimed at the independent growth of a subsidiary that has been nurtured over a long period following its acquisition, as well as expansion into new businesses.

The company emphasized that DTS was not established through a physical or spin-off of a core business division, but was incorporated into the group through an acquisition in the past, and has since grown through continued investment and management improvement. Therefore, it insisted that there are structural differences from typical duplicate listing cases in which the parent company's business value is transferred externally.

Dasan Networks further explained that DTS's business areas are clearly distinct from those of its parent company, and since it has grown based on its own technological capabilities and global network, the company expects that the independent management system and management efficiency will be further strengthened after the listing.

A company representative stated, "The DTS listing is not a transfer of existing shareholder value to the outside, but a process in which a subsidiary with its own independent business base is evaluated by the capital market according to its stage of growth," adding, "If we secure greater external credibility and fundraising capabilities through the listing, it will help with winning large-scale project orders and expanding into overseas markets, thereby supporting our mid-to-long-term growth strategies."

The company also highlighted the recommendation in favor by global proxy advisory firm Institutional Shareholder Services (ISS). ISS is known to have recommended approval for all agenda items at the upcoming extraordinary general meeting of Dasan Networks. The company evaluated this as an example of global institutional investors recognizing that the listing process does not infringe on shareholder rights and interests.

Dasan Networks expects that, through the DTS listing, the value of its subsidiary—which was not fully recognized while it was unlisted—will be objectively revealed in the market. As a result, the value of DTS shares held by the parent company is also expected to be reassessed, which could have a positive effect on restoring the long-undervalued corporate value of Dasan Networks.

At the same time, the company plans to implement tangible shareholder return policies in parallel. Dasan Networks announced it will seek to enhance shareholder value through measures such as increasing dividends, canceling treasury shares, and canceling bonds with warrants (BW).

A company representative said, "We believe that it is possible to secure resources for DTS's growth, realize the value of Dasan Networks' equity holdings, and expand shareholder returns all at the same time," adding, "Going forward, we will continue to implement actual shareholder return policies and maintain ongoing communication with the market to create a case where both group growth and shareholder value are enhanced together."

Dasan Networks' strategy is to secure growth drivers for its subsidiary through the DTS listing, while also pursuing joint growth for both the parent company and the subsidiary with an active shareholder return policy.

This content was produced with the assistance of AI translation services.