[Click eStock] "Dongwon Industries Begins to Enhance Corporate Value"

Subsidiary to Be Delisted and Integrated, Easing Dual Listing Burden
U.S. Subsidiary StarKist Lawsuit Issue Also Resolved

Dongwon Industries has decided to make Dongwon F&B a wholly owned subsidiary and delist it, which is seen as resolving the issue of dual listing. Analysts predict that this will lead to a significant increase in the company's corporate value.

On July 2, KB Securities set an initial target price of 87,000 won for Dongwon Industries and issued a 'Buy' investment rating. The company appears to believe that the dual listing issue, which was one of the factors leading to a holding company discount, has now been resolved.

Dongwon Industries plans to integrate and restructure its food segment by making Dongwon F&B a 100% subsidiary. There are also expectations that the company may pursue large-scale global mergers and acquisitions (M&A) in the future.

The resolution of the lawsuit involving StarKist, in which Dongwon Industries holds a 100% stake, was also cited as a positive factor. StarKist is the leading company in the U.S. canned tuna market. The price-fixing lawsuit had been the biggest risk, but it was recently settled completely with the payment of approximately 300 billion won in settlement fees. Analysts believe that expectations for new businesses and growth potential resulting from this will further enhance Dongwon Industries' corporate value. KB Securities estimates StarKist's corporate value at a minimum of 1 trillion won.

Park Geonyoung, a researcher at KB Securities, explained, "Dongwon Industries is securing new growth drivers by leveraging stable cash flows from its tuna business to invest in fishing technology, expand its food-related product lines, and advance existing products into overseas markets."