Binggrae Withdraws Plan for Demerger and Transition to Holding Company

Decision Made Due to Need for a Clearer Plan to Enhance Shareholder Value

Binggrae withdrew its plan to transition to a holding company system, which had been officially announced in November last year, just two months later.

On the 24th, Binggrae announced through a public disclosure that it would withdraw all matters related to the company split following the withdrawal of the company split plan.

On November 22 of last year, Binggrae had announced its resolution to split into a holding company and an operating company by May this year. Previously, Binggrae stated that after the split, the holding company would focus on investment business areas such as new business investments and subsidiary management, while the operating company would concentrate on the business division subject to the split. This was intended to maximize the business competitiveness and growth potential of each business division, establish a foundation for sustainable future growth, efficiently allocate management resources, receive appropriate corporate value evaluations from the market, and ultimately enhance corporate and shareholder value.

At that time, Binggrae planned to establish a new company called "Binggrae" through a spin-off to independently operate the production and sales of beverages and food products, while the surviving company, tentatively named "Binggrae Holdings," would transition into a holding company to strategically manage investments and business portfolios.

However, through the disclosure on this day, Binggrae stated, "At the board meeting held on January 24, 2025, it was resolved to withdraw all progress and documents related to the split plan." The company explained the background of the withdrawal by saying, "After communicating with various stakeholders, it was determined that it is necessary to prepare a clearer plan to enhance shareholder value before the spin-off and transition to a holding company, and that it is appropriate to pursue the spin-off and holding company transition after the future business direction becomes more clearly visible."

Binggrae added, "All procedures related to the split plan have been canceled by this resolution, so investors are kindly asked to take note of this," and "The company will continue to make efforts to enhance corporate value in the future."