Binggrae Withdraws Plan for Demerger and Transition to Holding Company

"Decision Made Due to the 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 is withdrawing all matters related to the company split following the withdrawal of the company split plan.

Last November 22, Binggrae announced that it had resolved to split into a holding company and an operating company through a spin-off in 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, thereby maximizing the business competitiveness and growth potential of each business division, establishing a foundation for sustainable future growth, efficiently allocating management resources, receiving appropriate corporate value evaluations from the market, and ultimately enhancing corporate value 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 the entire plan related to this split." The company explained the background of the withdrawal by saying, "As a result of communication with various stakeholders, it was deemed necessary to prepare a clearer plan to enhance shareholder value before the spin-off and transition to a holding company, and it was judged 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."