Dongkuk Holdings, Dongkuk Steel, and Dongkuk CM Change of Listing and Relisting
Dongkuk Steel Group's three split companies, Dongkuk Holdings, Dongkuk Steel, and Dongkuk CM, will each undergo a changed listing and re-listing on the KOSPI market on the 16th.
Dongkuk Steel approved the agenda for the spin-off at an extraordinary general meeting of shareholders on the 12th of last month and split into three companies on the 1st of this month: the surviving company Dongkuk Holdings, the newly established hot-rolled business company Dongkuk Steel, and the newly established cold-rolled business company Dongkuk CM. Dongkuk Steel has been suspended from trading since the 30th of last month, and all three split companies are scheduled to resume trading from today.
Following the spin-off, existing Dongkuk Steel shareholders will hold the same proportion of shares in all three split companies. The shares of the three split companies will start at the closing price of 11,400 KRW on the 26th of last month. From 8:30 AM until before market opening on the day, buy and sell orders will be accepted within the range of the lowest price (50% of 11,400 KRW) to the highest price (200% of 11,400 KRW) to determine the reference price. After the market opens, a price limit of ±30% based on the reference price will be applied.
The surviving company Dongkuk Holdings will serve as the group's strategic control tower, focusing on discovering new growth engines. Vice Chairman Jang Se-wook stated on the day of the spin-off shareholders' meeting, "We will prioritize discovering new growth businesses in steel-related materials, parts, and equipment sectors." Dongkuk Holdings plans to expand its scope from discovering synergy businesses in steel and materials-parts-equipment sectors to related group businesses such as IT and logistics, and eventually secure new business areas by establishing a future corporate venture capital (CVC).
The newly established company Dongkuk Steel will focus on advancing eco-friendly electric arc furnace technology under the core strategy of 'Steel for Green.' Electric arc furnaces emit about one-quarter of the carbon emissions compared to blast furnaces and are regarded as a key process leading the transition to a future eco-friendly steel era. Dongkuk Steel is the first company in Korea to introduce and operate electric arc furnaces and possesses top competitiveness in this field.
The newly established company Dongkuk CM will focus on building a global 1 million ton sales system under the strategy 'DK Color Vision 2030.' Dongkuk CM was the first in Korea to produce color steel sheets and pioneered the era of customized color steel sheets through brands such as Luxsteel and Appsteel. It holds the world's number one production capacity based on a single factory.
Dongkuk Steel Group expects that by having the surviving company focus on investment and the business companies concentrate on specialized businesses, efficiently allocating management resources, corporate value and shareholder value will be enhanced. Dongkuk Steel Group plans to complete the establishment of a holding company system in the second half of the year through a public tender offer and in-kind contribution.
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