"Promoting Management Efficiency and Sustainable Growth" Dongwon Industries-Dongwon Enter, Merger Proposal Passed

Merger Effective Date on November 1, New Shares Listing Scheduled for November 16
Articles of Incorporation Amendment for Stock Split Passed...Par Value Split to One-Fifth

[Asia Economy Reporter Eunmo Koo] The merger proposal between Dongwon Industries and Dongwon Enterprises has been approved.

On the morning of the 14th, Dongwon Industries announced that the approval of the merger agreement with Dongwon Enterprises was passed at the extraordinary general meeting held in the auditorium on the 20th floor of the Dongwon Industries Building in Yangjae-dong, Seoul. The merger date is set for November 1, and the new shares from the merger will be listed on the 16th of the same month.

Earlier, since April, Dongwon Industries has been promoting the merger with its holding company Dongwon Enterprises to enhance corporate and shareholder value and improve management efficiency. The core purpose of the merger is to simplify the overlapping governance structure and allocate resources efficiently to strengthen the expertise in each business area. Furthermore, the merger aims to establish a decision-making structure that fosters the group’s medium- to long-term growth.

A Dongwon Industries official stated, “The approval agenda for the merger agreement was smoothly passed at the extraordinary general meetings of both companies,” adding, “We will complete the remaining procedures related to the merger lawfully and transparently while concretizing the group’s growth roadmap and synergy strategy.”

Taking this merger initiative as an opportunity, Dongwon Industries has received great acclaim for efforts to enhance shareholder value by strengthening communication with the capital market as well as promoting group growth. Although the initial merger ratio was calculated based on market price data, the company listened to some shareholders’ requests and presented a merger ratio based on asset value. This approach, considering market opinions and making rational decisions, is regarded as a model case in Korea’s capital market.

Meanwhile, at the extraordinary general meeting on the same day, Dongwon Industries also passed an agenda to amend the articles of incorporation for a stock split. To activate trading, the existing par value will be split from 5,000 won to 1,000 won, lowering the price per share and increasing the number of circulating shares.

Dongwon Industries achieved record-high sales and operating profit in the first half of this year. During this period, the consolidated financial statements showed sales of 1.6723 trillion won and operating profit of 179.6 billion won, representing growth of 24.2% and 41%, respectively, compared to the same period last year. After the merger, Dongwon Industries plans to strengthen its global competitiveness as a “business-type holding company” and pursue sustainable growth through business diversification and discovering new growth engines.