SG, Early Redemption of Convertible Bonds... Complete Resolution of Lime-Related Risks

[Asia Economy Reporter Jang Hyowon] SG, the No.1 company in the asphalt concrete (Ascon) industry, announced on the 23rd that it has early repaid 4.5 billion KRW of convertible bonds (CB) issued to Lime Fund.

It added that the remaining CBs of Lime Fund will also be transferred to a newly established asset management company scheduled to launch in August.

As a result, SG will fully settle all convertible bonds issued by Lime Fund on July 20, 2018, by August, completely resolving the Lime risk.

An SG official explained, “Lime Fund was not an investment by SG in Lime Asset Management, but rather CBs invested in SG by investors through Lime Fund, so there was no issue. However, due to concerns that shareholders might have a negative view because of the Lime incident, we are taking steps to resolve this to enhance shareholder trust and shareholder value.”

Meanwhile, SG is currently expanding its business area by developing the equipment EGR+, an eco-friendly Ascon business, for the first time in Korea, in addition to its road paving business.