Daelim Industrial Corporate Split Finalized... Holding Company System Launching in January

Daelim Industrial "Original Plan Approved at April 4 Extraordinary General Meeting"
Overwhelming Support from Foreign Investors and National Pension Service

[Asia Economy Reporter Onyu Lim] Daelim Industrial's corporate split plan has been finalized with overwhelming approval.

Daelim Industrial announced on the 4th that all agenda items, including the corporate split and the appointment of internal and external directors, were approved as originally proposed at the extraordinary general meeting of shareholders held at its headquarters in Susong-dong, Jongno-gu, Seoul.

The voting result for the approval of the split plan agenda on that day showed a 68.4% attendance rate with a 99.5% approval rate. To approve the corporate split agenda, more than one-third of the total issued shares and more than two-thirds of the shareholders attending the general meeting must approve.

Within the industry, the prevailing opinion was that Daelim Industrial's corporate split agenda would pass smoothly.

This was because the world's largest proxy advisory firms, ISS (Institutional Shareholder Services) and GlassLewis, expressed support for Daelim Industrial's split agenda, leading to expectations that a significant number of foreign investors would follow their recommendations. Foreign investors hold 36.5% of Daelim Industrial's shares.

Additionally, the National Pension Service, which holds 13.04% of Daelim Industrial's shares, also expressed support for the split plan, strengthening the strategic justification for the corporate split.

Accordingly, Daelim Industrial will launch a holding company structure consisting of DL Holdings, a construction business company DL E&C, and a petrochemical company DL Chemical on January 1 of next year.

Daelim Industrial will be split by spin-off into DL Holdings and DL E&C, and DL Chemical will be spun off as a subsidiary from DL Holdings.

DL Holdings and DL E&C will distribute shares of the newly established companies to existing company shareholders according to their shareholding ratios. The split ratio is 44% for DL Holdings and 56% for DL E&C.

DL Holdings will spin off its petrochemical business to establish DL Chemical. DL Holdings will hold 100% of DL Chemical's shares.

The holding company DL Holdings will focus on supporting and coordinating independent growth strategies for each affiliate.

DL E&C plans to accelerate digital transformation based on stable profit growth and grow into a total solution business operator centered on productivity and developers. DL Chemical's strategy is to expand its business scale through the expansion of existing production facilities and enter the specialty business to become a global petrochemical company.

This content was produced with the assistance of AI translation services.