Shinsegae Engineering & Construction moves toward voluntary delisting... E-Mart to begin public takeover from 30th (Korea)

E-Mart, a member of the Shinsegae Group, a leader in South Korea's retail industry, will hold a stock exchange trade of Shinsegae Engineering & Construction's common stock listed on the KOSPI for 30 days from the 30th to the 29th of next month.
E-Mart plans to make a public acquisition of 2,120,661 shares (27.33% of the total issued shares). As the largest shareholder of Shinsegae Engineering & Construction, E-Mart will purchase 5,468,461 common shares (
It will purchase the remaining shares excluding the 171,432 shares (2.21%) held by Shinsegae Construction.
Through this, Shinsegae Engineering & Construction will voluntarily delist and expedite the business
The plan is to restructure and normalize management. In order for a company listed on the KOSPI to voluntarily delist, major shareholders must hold more than 95% of the stock, excluding the company's own shares.
Shinsegae Construction has been seen as the main cause of E-Mart's sluggish performance. According to information from the distribution industry, E-Mart's tender offer price for Shinsegae Construction is set at 10,605,000 yen, the closing price on the 27th.
The tender offer is set at 18,300 won per share, a 14% increase from the previous 0 won offer. The total acquisition price will be approximately 38,880,963,000 won (approximately 4.3 billion yen). Shinhan Investment Securities is in charge of the tender offer.
The takeover bid is aimed at normalizing management through the simplification of the control structure, the establishment of an efficient decision-making system, and the rapid restructuring of the business structure.
The purpose of the deal is to protect investors who hold shares in the company and to ensure responsible management practices as the company's largest shareholder. Shinsegae Engineering & Construction Co., Ltd. is expected to file for bankruptcy in 2022 due to the impact of a real estate project financing (PF) malfunction.
It recorded large operating losses for two consecutive years in 2018 and 2019. Despite assistance from Shinsegae Group in providing liquidity, concerns about a declining credit rating and a liquidity crisis continue.