Asphalt concrete manufacturer SG has successfully completed a rights offering, securing approximately 31.8 billion KRW in new capital.
On the 20th, SG announced that the subscription rate for the rights offering conducted from the 18th to 19th for existing shareholders reached 101.6%. The number of shares to be issued is 30 million common shares, and since the subscription rate exceeded 100%, there will be no separate public subscription process. The payment date is scheduled for the 27th, and the new shares are expected to be listed on the 9th of next month.
An SG representative stated, “The funds raised through this rights offering will be used for the acquisition of the asphalt concrete plant in Ukraine and for the maintenance of aging facilities at domestic plants. By repaying part of the loans borrowed from financial institutions, we expect to reduce interest expenses and secure financial soundness.”
Meanwhile, SG’s local subsidiary in Ukraine, SG Ukraine (SGU), signed a memorandum of understanding (MOU) on the 10th with Pobuzhsky Ferronickel Kombinat (PFK) in Ukraine to supply up to 600,000 tons of steelmaking slag annually. Through this MOU, SGU will enter into a long-term agreement renewed every three years to supply asphalt concrete for highway construction and reconstruction within Ukraine.
Additionally, to ensure smooth asphalt concrete supply locally, SG CEO Park Chang-ho and key executives signed a contract with DS Prom Group in Kyiv, the capital of Ukraine, for entrusted production of Eco Steel Asphalt Concrete. This contract aims to secure a production base to respond to initial supply volumes before acquiring the local asphalt concrete plant. The company explained that it will actively proceed with the acquisition of the local asphalt concrete plant using the funds proactively secured through the capital increase.
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