[Special Stock] Hanil Cement Hits Record High on News of Merger with Hanil Hyundai Cement

Hanil Cement is showing strong performance in early trading.

As of 9:07 a.m. on July 18, Hanil Cement was trading at 21,700 won, up 14.57% (2,760 won) from the previous day. At one point during the session, it climbed to 21,900 won, marking a new 52-week high.

Investor sentiment appears to have been boosted by the news, released after the market closed the previous day, that Hanil Cement will absorb its subsidiary, Hanil Hyundai Cement, through a merger. The merger will be carried out by issuing new shares of Hanil Cement, the surviving company, to shareholders of Hanil Hyundai Cement. For each common share of Hanil Hyundai Cement, 1.0028211 common shares of Hanil Cement will be allocated. The merger is scheduled to take effect on November 1.

Since both Hanil Cement and Hanil Hyundai Cement are engaged in the cement manufacturing and sales business, the merger is expected to enhance management efficiency. The newly merged Hanil Cement is projected to achieve annual sales of approximately 1.7 trillion won based on last year's figures. The company is expected to solidify its position as the No. 1 player in the domestic cement industry, with a Portland cement market share exceeding 20%.

Hanil Cement currently holds a 77.8% stake in Hanil Hyundai Cement. After the merger, Hanil Holdings, the largest shareholder of Hanil Cement, is expected to see its ownership stake in Hanil Cement decrease from 63.5% to 59.8%.