Stainless steel cold-rolled sheet manufacturer Daeyang Metal (CEO Jo Sang-jong) announced on the 11th that it has early repaid long-term loans worth 50 billion KRW from financial institutions incurred during the acquisition of its subsidiary Youngpoong Paper last year.
Daeyang Metal reported through a disclosure on the 10th that the major contract share ratio related to the refinancing of stock-collateralized loans decreased from 37.28% to 29.01%, and that the shareholding ratio changed from 37.53% to 41.87% due to the treasury stock cancellation by its subsidiary Youngpoong Paper.
The company secured the funds for this early repayment through 20 billion KRW of its own capital and refinancing 30 billion KRW of low-interest short-term loans. This is expected to reduce the total loan amount, improve debt ratio management, and lower interest rates.
A company official stated, "We are repaying the debts incurred during the acquisition of the subsidiary as planned. We will also strive to repay the remaining short-term loans within this year to reduce financial costs, lower the debt ratio, and increase profitability."
Last year, Daeyang Metal acquired its subsidiary Youngpoong Paper to expand its business structure and improve its corporate health, and has been focusing on the business. Youngpoong Paper produces paper cores and corrugated paper used in industrial products such as chemical fibers and films, and is also strengthening its capabilities in new environmental business areas such as wastewater treatment facility construction. The company plans to solidify the collaborative system with Youngpoong Paper this year and pursue a co-growth strategy.
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