[Click eStock] "SeAH Besteel, Stake Changes After Physical Division Are Key"

[Asia Economy Reporter Ji Yeon-jin] Kiwoom Securities forecasted that the changes in the stakes of SeAH Besteel and SeAH Changwon Special Steel under SeAH Besteel Holdings after the physical division of SeAH Besteel will be a key factor for the future stock price.

SeAH Besteel announced that it will physically split its business units except for the investment division to create a new company, transitioning to a holding company system where the surviving company, SeAH Besteel Holdings, will own 100% of the shares.

This physical division aims to enable specialized and systematic management focused on the special steel business, create horizontal synergies among subsidiaries, strengthen strategic functions, enhance the discovery of future new growth engines, and reinforce non-financial capabilities through ESG management centered on the board of directors.

Lee Jong-hyung, a researcher at Kiwoom Securities, stated, "Currently, SeAH Besteel is 61.72% owned by the holding company SeAH Holdings, and through this division, SeAH Besteel Holdings will act as an intermediate holding company," adding, "Whether there will be changes in the stakes of SeAH Besteel and SeAH Changwon Special Steel under SeAH Besteel Holdings after the division will be a key factor for the future stock price."

Park Sung-bong, a researcher at Hana Financial Investment, said, "Although SeAH Besteel mentioned that it is not considering additional IPOs for its main subsidiaries after transitioning to a holding company, the stock price plunged 13.8% the previous day due to concerns about dilution of the holding company's shares following the physical division disclosure," and added, "Considering that SeAH Besteel's largest shareholder and related parties hold 62.65%, the agenda is relatively likely to pass at the shareholders' meeting on March 25."