[Market Focus] HD Hyundai Construction Equipment and Infracore Surge on Merger News

Shares of HD Hyundai Construction Equipment and HD Hyundai Infracore, both construction machinery affiliates of HD Hyundai Group, surged in early trading on July 2 following news of their merger.

As of 9:18 a.m. on this day, HD Hyundai Construction Equipment was trading at 87,000 won on the Korea Exchange, up 15.23% from the previous trading day. The stock opened at 81,300 won and has been trending upward.

At the same time, shares of HD Hyundai Infracore were trading at 12,940 won, up 3.52% from the previous session.

The previous day, both companies announced that their respective boards of directors had approved the merger proposal. Through this merger, the two companies will be reborn as "HD Construction Equipment" (tentative name), with combined annual sales of 8 trillion won.

The merger will be carried out by issuing new shares of the surviving entity, HD Hyundai Construction Equipment, to shareholders of HD Hyundai Infracore. The merger ratio is set at 0.1621707 shares of HD Hyundai Construction Equipment for each share of HD Hyundai Infracore common stock.

HD Hyundai Construction Equipment will hold an extraordinary general meeting of shareholders on September 16 to seek shareholder approval. Shareholders who oppose the merger can exercise their appraisal rights and request the company to purchase their shares. The appraisal price is set at 75,545 won per share for HD Hyundai Construction Equipment and 11,885 won per share for HD Hyundai Infracore.