Samsung SDI's Rights Offering Employee Advance Subscription Fully Subscribed... "Expectations for Performance Improvement"

2,364,200 Shares Allocated to Employee Stock Ownership Association
Subscription for Existing Shareholders Begins on May 21
Rights Offering Funds to Be Used for 'Enhancing Competitiveness'

Samsung SDI has made a smooth start in its ongoing rights offering, with all shares allocated for the employee stock ownership association being fully subscribed during the advance subscription phase. This is seen as confirmation of internal confidence in the company's future growth potential and business competitiveness.

Samsung SDI headquarters located in Giheung, Yongin, Gyeonggi Province. Provided by Samsung SDI

According to industry sources on May 21, advance subscriptions for Samsung SDI's employee stock ownership association recently exceeded the number of shares offered. Of the 11,821,000 new shares to be issued through the rights offering, 2,364,200 shares have been allocated to the employee stock ownership association.

Samsung SDI's rights offering will proceed through a shareholder allocation followed by a public offering for forfeited shares. After the subscription period for existing shareholders, which runs for two days starting today, any forfeited shares will be offered to the public on May 27-28, with the new shares scheduled to be listed on June 13.

A Samsung SDI representative said, "The high advance subscription rate for the employee stock ownership association reflects the belief that employees can purchase new shares at a discounted price compared to the currently undervalued stock price, as well as expectations for future performance improvement and confidence in the competitiveness of our businesses, including batteries for electric vehicles and energy storage systems (ESS)."

Previously, on April 30, Samsung Electronics, which is the largest shareholder of Samsung SDI with a 19.58% stake, announced that it plans to subscribe for 120% of its allocated shares, which is the maximum subscription limit. Depending on the allocation results for the oversubscription, the company expects to invest up to 319.8 billion KRW.

Samsung SDI plans to use the funds raised through the rights offering to invest in its joint venture with General Motors (GM) in the United States, expand production capacity at its Hungarian plant, and invest in solid-state battery line facilities. Through these investments, the company aims to enhance its competitiveness across all areas of its battery business and strengthen its foundation for future growth.