[Featured Stock] Gaon Cable Hits Upper Limit on Strengthened Equity Cooperation with LS Cable

Gaon Cable surged to the upper limit as it strengthened its equity cooperation with LS Cable.

On the 19th in the stock market, Gaon Cable was trading at the upper limit, up 29.88% from the previous day's closing price as of 3:15 PM. It remained flat throughout the session but started to rise vertically around 2:30 PM, reaching the price limit.

The news that Gaon Cable and LS Cable have strengthened their equity cooperation led to a sharp rise in the stock price.

Gaon Cable announced on the same day that it has secured 100% ownership of LS Cable & System (LSCUS), a power distribution cable manufacturing corporation located in Tarboro, North Carolina, USA. LSCUS is a joint venture in which LS Cable and Gaon Cable have held 82% and 18% stakes, respectively.

At the board meeting held that day, Gaon Cable approved the agenda of 'third-party allotment paid-in capital increase and acquisition of LSCUS shares' and resolved to acquire the 82% stake held by LS Cable through a contribution in kind. As compensation for the contribution in kind, Gaon Cable will issue 6,684,736 new shares to LS Cable.

Accordingly, LSCUS became a 100% subsidiary of Gaon Cable, and LS Cable became a shareholder holding shares in Gaon Cable. With the strengthened equity cooperation between the two companies, it is expected that their strategic partnership in the U.S. power-related business will also be reinforced.