Polaris Office: "Most of the Remaining Balance in the 3rd CB Belongs to Major Shareholders... No Overhang Burden"

[Asia Economy Reporter Yoo Hyun-seok] Polaris Office, a company specializing in office software, announced on the 7th that approximately 5.7 billion KRW of the outstanding unconverted bonds from the 3rd series convertible bonds (CB) correspond to shares held by major shareholders, so there is no overhang (potential large-scale sale waiting volume) issue.

After additional exercise of conversion rights amounting to 960 million KRW out of 10 billion KRW of the 3rd series CB on the 3rd and 6th, the remaining unconverted bond balance is 8.06 billion KRW. Among this, Chairman Jo Seong-woo holds 4.9 billion KRW, and friendly investors including special related parties hold 770 million KRW, making the total major shareholder holdings 5.6 billion KRW.

This volume is expected to be converted into shares in the future as Chairman Jo Seong-woo of Polaris Group secures the largest shareholder status of Polaris Office. Chairman Jo currently holds 4.9 billion KRW (4,865,938 shares) of Polaris Office CB and 54,200 shares of Polaris Office acquired through on-market purchases.

When Chairman Jo converts the CB he holds into shares, the largest shareholder of Polaris Office will change from Sewon to Chairman Jo Seong-woo. This is aimed at establishing a vertically integrated structure of Polaris Group centered on Polaris Office.

A Polaris Office official stated, “Most of the 3rd series CB balance is held by top management and major shareholders to secure the largest shareholder status, so there is no burden of overhang,” and added, “We will stabilize the governance structure among group companies by establishing a vertical integration structure centered on Polaris Office and enhance business efficiency and synergy.”