Senko, Partial RCPS Redemption... "Enhancing Shareholder Value"

Senco, a specialized company in electrochemical gas sensors, announced on the 23rd that it has decided to early redeem part of its Redeemable Convertible Preferred Shares (RCPS) and subsequently cancel them.

Senco raised 12.5 billion KRW from ‘LB Posco New Growth PEF’ in 2021. The RCPS to be canceled this time amounts to 462,428 shares, which is about 20% of the total. They are scheduled to be redeemed on the 26th of this month and canceled on the 30th of the same month. Through this, Senco expects to reduce its debt ratio and contribute to resolving the overhang issue.

LB Posco New Growth PEF is a project fund managed by LB Investment, with Korea Growth Finance’s ‘Posco New Growth Fund No.1’ as a major limited partner (LP). The ‘Posco New Growth Fund No.1’ is a mother fund operated by Korea Growth Finance with the goal of discovering new growth engines for the Posco Group, primarily investing as an LP in PEFs and VC funds. In 2021, Senco was recognized for its technological capabilities by the Posco Group and was selected as a ‘Global Value-Up Company.’

Ha Seung-cheol, CEO of Senco, said, “We are communicating closely with Posco, the major LP of the fund, and new products reflecting the demands of the field are scheduled to be launched in the first half of this year. The decision to redeem and cancel part of the RCPS was reached through consultation with the asset manager LB Investment to enhance shareholder value, and we will continue to strive to show sincerity to our shareholders.”