Taeyoung Group Transitions to Holding Company in 2020..."Enhancing Expertise and Transparency"

[Asia Economy Reporter Onyu Lim] Taeyoung Construction announced on the 23rd that it held a board meeting on the 22nd and resolved to transition to a holding company system by splitting into an operating company and a holding company.

Through this spin-off, Taeyoung Construction will establish a new holding company, TY Holdings Co., Ltd. (tentative name), for the purpose of managing subsidiaries and investing in new businesses. Taeyoung Construction will focus on the construction business sector, freeing itself from the role and management burden of the existing parent company.

Taeyoung Construction plans to reduce the complexity of the group's management structure through the transition to a holding company system, thereby strengthening the expertise and transparency of each business sector, including construction, environment, logistics, and leisure. A Taeyoung Construction official explained, "By separating the roles of business and investment divisions, we aim to pursue management centered on core competencies for each business and to discover future growth engines."

In the transition to the holding company system, the split ratio between the surviving company, Taeyoung Construction, and the newly established company, TY Holdings, is approximately 51:49. Existing Taeyoung Construction shareholders will hold shares in Taeyoung Construction and TY Holdings according to the split ratio after the spin-off and listing.

Following the board approval on the day, Taeyoung Construction will receive final approval for the spin-off at the extraordinary general meeting of shareholders scheduled for May. The company plans to complete the split between the operating company and the holding company by the end of June. A Taeyoung Construction official stated, "Through the transition to a holding company system, we will enhance the management expertise and transparency of the Taeyoung Group," adding, "This lays the foundation for a second leap toward sustainable growth."