Rongtu Korea Secures Cash by Disposing The E&M Shares... "Considering Shareholder Return Plan"
[Asia Economy Reporter Jang Hyowon] Longtu Korea announced on the 22nd through a public disclosure that it sold 2,368,000 shares of THE E&M on the market. With this stock sale, Longtu Korea's holdings of THE E&M shares decreased from 12,265,688 shares to 9,897,688 shares.
Longtu Korea had previously sold 1,850,307 shares of THE E&M through on-market sales and block deals on the 9th and 11th, respectively, disposing of a total of 4,218,307 shares of THE E&M this month alone.
A company official stated, "Due to the recent rise in THE E&M's stock price, we sold some of our holdings to secure approximately 5 billion KRW in cash," adding, "We are actively reviewing shareholder return plans to enhance shareholder value by utilizing the cash secured from the sale of THE E&M shares along with existing funds."
THE E&M's stock price, which was only 618 KRW at the end of the third quarter, recently rose to the 1,300 KRW range, leading Longtu Korea to expect significant capital gains from sales and valuation gains on remaining shares this quarter. Meanwhile, at the end of the third quarter, Longtu Korea reflected a 4.2 billion KRW financial asset valuation loss due to THE E&M's weak stock price.
In 2015, Longtu Korea participated in THE E&M's paid-in capital increase and became THE E&M's largest shareholder. However, as it reduced investments in non-core businesses, it has been disposing of its holdings in THE E&M. Due to the decline in shareholding ratio, THE E&M's largest shareholder changed last year to Navis Fidelis 5th Partnership.
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