The First Priority for Capital Increase Review by FSC Is Samsung SDI

The Financial Supervisory Service (FSS) has selected Samsung SDI as the first subject for focused review of its rights offering.

Samsung SDI headquarters building. Provided by Samsung SDI

According to financial authorities on the 17th, the FSS decided on the 14th to conduct a focused review regarding the securities registration statement for the rights offering submitted by Samsung SDI. This is the first time the FSS, which disclosed its review direction for rights offerings last month, has proceeded with actual focused review procedures.

The FSS previously announced that it would select rights offerings for focused review based on major categories such as ▲concerns over stock value dilution ▲concerns over infringement of general shareholders' rights ▲excessive financial risk ▲negligence of underwriters' duty of care, along with seven subcategories. In such cases, the FSS intensively examines the justification for the rights offering, the decision-making process, board discussions, and shareholder communication plans.

The FSS reportedly selected Samsung SDI for focused review considering the large scale of the capital increase and the fact that this is the company's first rights offering.

Earlier on the 14th, Samsung SDI announced a decision to raise approximately 2 trillion won through a rights offering aimed at proactively securing investment funds. It plans to distribute 11,921,000 shares (a 16.8% increase) through a general public offering of unsubscribed shares after shareholder allocation. The funds raised will be used for investments in a joint venture with the U.S. company General Motors (GM) and for expanding production capacity at its plant in Hungary.