Asset Spin-off Method... Poongsan Holds 100% Stake in Newly Established Corporation
In the case of Pungsan, it recently signed a contract with the Thai government for the sale and purchase of 5.56mm rifle ammunition worth 15 million dollars (approximately 17 billion won) ahead of an exhibition.
[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Poongsan is splitting its defense business. The defense business division, tentatively named 'Poongsan Defense,' is scheduled to officially launch in December.
On the 7th, Poongsan held a board meeting and announced that it resolved to split the defense business to enhance corporate value and shareholder value by focusing on specialized business areas.
Accordingly, after obtaining approval at an extraordinary general meeting of shareholders on October 31, the newly established company dedicated to the defense business, 'Poongsan Defense' (tentative name), is expected to officially launch on December 1.
This split will be carried out as a physical division in which Poongsan owns 100% of the shares of the new company. The newly established defense company will remain unlisted to prevent dilution of existing shareholder value.
A Poongsan official explained, "The decision to split the defense business was made because, considering the business outlook and market conditions, it is the optimal time to strengthen management efficiency and maximize shareholder value through independent and responsible management."
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