Overseas Sales Ratio of Food Business to Reach 40% by 2030
Integration of Global Research and Development Center
Resolving Dual Listing... Strengthening Shareholder Returns
Dongwon Group is reorganizing its business structure among affiliates to accelerate the expansion of its global food business. The holding company Dongwon Industries will incorporate Dongwon F&B as a 100% subsidiary and transition to a 'Global Food Division' system that unites domestic and overseas food affiliates.
On the 14th, Dongwon Industries and Dongwon F&B each held board meetings and approved a comprehensive stock exchange agreement. Through this transaction, Dongwon Industries will acquire 100% of Dongwon F&B's shares, and Dongwon F&B will be delisted. The stock exchange ratio was calculated as Dongwon Industries 1 share : Dongwon F&B 0.9150232 shares in accordance with the Enforcement Decree of the Capital Markets Act.
Overseas Sales Ratio of Food Business to Reach 40% by 2030
The two companies plan to hold an extraordinary general meeting of shareholders on June 11 to propose the stock exchange agenda. Dissenting shareholders will be granted the right to request stock purchase, with exercise prices set at 35,024 KRW for Dongwon Industries and 32,131 KRW for Dongwon F&B. The number of newly issued shares will be finalized after the stock purchase request period ends on July 1.
This governance restructuring is a strategic move to simultaneously expand the scale and competitiveness of the food business in the global market. It aims to overcome structural limitations such as low growth, high cost structure, and intensified competition in the domestic market and secure a second growth foundation in the overseas food business.
With this restructuring, Dongwon Industries will launch a global food division integrating Dongwon F&B, Dongwon Home Food, Starkist, S.C.A SA, and others. The goal is to increase the overseas sales ratio of the group’s food business from 22% in 2024 to 40% by 2030.
Integration of Global Research and Development Center
The group will also consolidate its scattered R&D organizations into a 'Global R&D Center.' The proportion of R&D expenses, currently about 0.3% of sales, is planned to be tripled to over 1% by 2030.
By actively utilizing the distribution network of its U.S. subsidiary Starkist, the group will target the North American and Latin American markets, simultaneously launching joint products combining Starkist and Dongwon F&B’s steady sellers and developing new products. Additionally, it plans to secure a foothold for entry into the Middle Eastern and European markets through collaboration with tuna processing subsidiaries in Senegal such as S.C.A SA and Capsen. Dongwon Industries will also lead mergers and acquisitions (M&A) to drive rapid growth.
Resolving Dual Listing... Strengthening Shareholder Returns
This stock exchange is also notable for enhancing transparency in the group’s governance structure. By resolving the dual listing of Dongwon Industries and Dongwon F&B, the group aims to eliminate the 'Korea discount' factor. Dongwon Industries will directly oversee the global food business, increasing market trust and improving investor understanding.
Changes are also expected in terms of shareholder returns. Existing Dongwon F&B shareholders will become Dongwon Industries shareholders, likely resulting in higher dividend yields. As of last year, Dongwon Industries paid dividends of 1,100 KRW per share, while Dongwon F&B paid 800 KRW per share.
A Dongwon Group official stated, "This is a structural innovation effort to simultaneously pursue the reorganization of the global food business and the resolution of dual listing. We will secure a second growth engine and enhance shareholder value."
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