Kyungbang Electric: Largest Shareholder Haesung Industrial and Management to Participate in Paid-in Capital Increase

Kyungbang Electric announced on the 26th that its largest shareholder, Haesung Industrial, along with the company's management, has decided to participate in Kyungbang Electric's paid-in capital increase.

On the previous day, Haesung Industrial held a board meeting and resolved to participate in Kyungbang Electric's paid-in capital increase, subscribing to a total of 2,788,002 new shares. Based on the first offering price of 3,200 won per share, the subscription amounts to approximately 8.9 billion won.

Haesung Industrial plans to comply with the current Monopoly Regulation and Fair Trade Act requirement for holding over 30% of a listed subsidiary’s shares under a holding company structure, and to prevent dilution from the 20% prioritized allocation to the employee stock ownership association. Accordingly, Haesung Industrial will subscribe to 2,572,548 shares, which is 120% of its 2,143,792 allocated shares. It also intends to purchase an additional 215,454 shares through the public offering.

Major shareholders and management, including Vice Chairman Dan Wooyoung and President Dan Woojoon, will also participate in the paid-in capital increase. They plan to exercise the entirety of their preemptive rights to newly issued shares, subscribing to a total of 237,327 shares, which amounts to approximately 760 million won based on the expected offer price.

According to Kyungbang Electric, the joint participation of the largest shareholder and the management demonstrates not only support for stable capital raising, but also their confidence in the company’s mid-to-long-term growth and commitment to responsible management.

A company official stated, “Haesung Industrial’s 120% subscription and public offering participation, along with the involvement of the major shareholders and management, not only satisfies the shareholding requirement for holding companies, but also shows the largest shareholder's firm trust in Kyungbang Electric’s future growth,” adding, “Through this paid-in capital increase, we will strengthen our financial structure, secure future growth engines, and continuously enhance our business competitiveness and shareholder value.”

Meanwhile, the final offering price for the capital increase will be determined on the 31st of this month, and the final amount is subject to change. The payment date for the new shares is set for the 11th of next month, and Haesung Industrial plans to fund the total amount with its own cash reserves.

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