Suseong Webtoon "Plans to Buy Back and Cancel CB Worth 25 Billion Won"

Suseong Webtoon plans to repurchase and cancel its convertible bonds (CBs).

On the 25th, Suseong Webtoon announced that it intends to repurchase and cancel the already issued convertible bonds to improve its financial structure and enhance shareholder value.

CEO Yoo Young-hak stated, "Last year, we sold the factory located in Cheongna, Incheon, for 35.1 billion KRW," adding, "We have received the down payment and interim payments, and will receive the remaining balance in mid-May." He continued, "To increase shareholders' asset value and re-evaluate corporate value, we plan to repurchase and cancel the convertible bonds at the time of receiving the remaining balance."

The company plans to repurchase and cancel convertible bonds worth approximately 25 billion KRW. The scale of repurchase and cancellation may vary depending on the review and consent of some investors.

Among the convertible bonds issued by Suseong Webtoon, the 21st series convertible bonds are secured by the factory that was sold. It is expected that the company will first repurchase and cancel 25 billion KRW worth of the 21st series convertible bonds.

The 21st series convertible bonds were issued at a conversion price of 1,548 KRW. As the stock price declined, the conversion price was adjusted down to 612 KRW. Since the refixing period is one month, the conversion price may rise again if the stock price increases in the future.

CEO Yoo of Suseong Webtoon explained, "I understand that there have been concerns recently about the heavy burden of convertible bond volume," adding, "The 21st series will be repurchased and canceled, and the 24th series convertible bonds are held by the largest shareholder, Toomics Holdings, so there is almost no possibility of them being released to the market." Toomics Holdings invested in the form of convertible bonds when participating in Suseong's paid-in capital increase.

With the proceeds from the sale of the Incheon factory, approximately 25 billion KRW worth of convertible bonds will be repurchased and canceled, and including about 16 billion KRW secured related to management participation, it can be said that about 41 billion KRW worth of convertible bonds are unlikely to be released to the market. The company believes that the stock dilution concerns in the market will not be significant.

Suseong Webtoon is a company engaged in logistics equipment business. It was acquired by Toomics Holdings last year. It holds a 41% stake in Toomics, a leading group in the webtoon sector. It also has subsidiaries such as Future Hightech, a semiconductor inspection equipment company, and The Queen AMC, a management company.

CEO Yoo said, "With Toomics Holdings acquiring Suseong Webtoon, the largest shareholder's stake increased to 34%, completing a stable governance structure," adding, "We are generating stable profits across all business areas this year and have high expectations for this year's management performance."