Seongho Electronics: "Ample Capacity for Additional Collateral on Major Shareholder's Stock-Backed Loan... 10% Extra Collateral Provided Preemptively"

On July 2, Seongho Electronics announced that it would take preemptive action regarding the stock-secured loan of Seoryong Electronics, for which it is the largest shareholder, by providing additional collateral and making early repayment of the loan.

The company stated, "We have ample capacity to provide additional collateral for Seoryong Electronics' stock-secured loan," and explained, "To enhance collateral stability, we plan to provide additional collateral at around the 10% level today."

Previously, Seoryong Electronics, the largest shareholder, had taken out a stock-secured loan of 300 billion won using its 38% stake in Seongho Electronics as collateral. Amid increased market concern over the value of the collateral due to recent stock market volatility and falling share prices, the company decided to take these preemptive measures to address those concerns.

Along with providing additional collateral, repayment of the loan will also proceed. Seongho Electronics plans to make an early repayment of approximately 50 billion won of the stock-secured loan next week, and further repay an additional 100 billion won in July, significantly reducing the total loan balance.

Seongjae Park, Vice Chairman of Seongho Electronics, said, "We have decided to first repay 50 billion won using our own cash reserves and proceeds from the sale of affiliates in non-semiconductor business areas," and added, "We plan to further reduce the loan balance by repaying approximately 100 billion won in July."

Once the loan repayment is completed, the collateral burden is also expected to decrease significantly. Based on a collateral ratio of 200%, the required collateral value will be reduced from the current 600 billion won to around 300 billion won. In addition, considering that the owner family holds about 17% of the shares, the threshold share price for forced selling is expected to decrease to below 8,000 won, according to the company.

The company also stated that, if necessary, it plans to stabilize the share price through its affiliates. The affiliate Finger holds more than 140 billion won in liquid assets and has already acquired Seongho Electronics shares worth 5 billion won in the market. It also plans to purchase an additional 5 billion won worth of shares.

From a business perspective, the company emphasized that the growth momentum in its semiconductor business continues. Vice Chairman Park stated, "ADS Tech achieved over 80% of its annual order target in the first half of this year, and we expect to meet the annual target entirely by July." He added, "Our strategy to leap forward as a specialized semiconductor company centering on ADS Tech is proceeding as planned."

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