Sijitronics Begins Process to Sell Controlling Stake

Sijitronics has begun the process of selling its controlling stake.

On October 30, Sijitronics announced the sale of existing shares and a third-party allotment of new shares. It also announced resolutions to convene an extraordinary general meeting of shareholders and to close the shareholder register and set a record date.

KN International is the recipient of the third-party allotment. The company plans to secure new operating funds through the share issuance under this agreement and strengthen its production and delivery capabilities. In addition to securing operating funds, it expects the agreement to deliver the strategic benefit of expanding its sales network by sharing global sales channels.

The company plans to raise a total of 5 billion won through two rounds of share issuance. The 2 billion won expected to be raised within 10 days will be used as operating funds for business revitalization, including the purchase of raw materials in response to increased orders.

The two parties are reportedly also in agreement on additional funding needed to operate the business after the two rounds of share issuance. The company plans to maintain the existing businesses pursued by the current CEO as its core operations, thereby ensuring business continuity.

A company official said, "The sale of existing shares and the share issuance were business decisions made to respond to increased orders from global customers and strengthen the growth foundation of our existing businesses. We will continue our current businesses while addressing instability in raw material procurement and focusing our efforts on stabilizing production and supply so that increased demand can translate into actual sales."

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