KR Motors "Major Shareholder 100% Subscription to Rights Offering"

KR Motors announced on the 30th that its largest shareholder, LVMC, subscribed to 100% of the shares allocated in the rights offering, supporting KR Motors' efforts to improve its financial structure and new business initiatives. With this funding, the company plans to repay convertible bonds (CBs), which could pose a potential dilution risk upon conversion, thereby enhancing shareholder value and improving corporate value based on the exclusive distribution contract with SYM.

LVMC Holdings, the largest shareholder holding 36.8% of KR Motors' shares, subscribed to 11.4 million shares, which is 100% of the rights offering allocated to existing shareholders. Based on the planned issue price of 756 KRW per share, this amounts to approximately 8.7 billion KRW out of the total 23.4 billion KRW raised through the rights offering. Including participation from related parties, the total subscription reaches around 10 billion KRW.

KR Motors has signed an exclusive domestic distribution contract with SYM, a global Taiwanese motorcycle manufacturer, and is targeting the domestic two-wheeler market. Additionally, to generate synergy, the company has appointed KB Securities as the lead manager to proceed with the sale of the largest shareholder’s stake to a strategic partner.

A KR Motors representative stated, “The largest shareholder’s full participation in the rights offering signifies a positive evaluation of KR Motors’ new SYM business and the repayment of potential dilution from convertible bonds, reflecting confidence in the company’s future value. The 100% subscription by the largest shareholder will alleviate concerns among general investors and raise expectations for the rights offering, thereby enhancing the company’s credibility.”