KMH-Keystone PE, SPA Agreement on Joint Management Plan

Formed Management Council for Key Decisions
Scheduled Repayment or Cancellation of 37 Billion KRW CB·BW
Discussing Long-term Shareholder Return Plans

[Asia Economy Reporter Lim Jeong-su] KMH announced on the 28th that the current largest shareholder and the private equity firm Keystone Private Equity (hereinafter Keystone PE) have agreed on a joint management plan to enhance corporate value and ensure mid- to long-term development.

KMH stated, "Although Keystone PE suddenly became the company's second-largest shareholder last September, causing considerable internal concerns, through mutual dialogue, we confirmed that the proposals made by Keystone PE originated from a genuine intention for the company's future development and shareholder interests," adding, "We judged that joint management would greatly contribute to long-term corporate value enhancement."

Accordingly, KMH will form a management consultative body composed of personnel from both sides to thoroughly discuss key policies such as management transparency, efficiency, and shareholder-friendly measures. A KMH official forecasted, "Through joint management, the company will be able to pursue growth and development more stably."

KMH also decided to redeem or repurchase and cancel all of the 17 billion KRW worth of bonds with warrants (BW) and 20 billion KRW worth of convertible bonds (CB) issued in September and October for urgent company funds. KMH explained that the largest shareholder accepted requests from Keystone PE and minority shareholders to eliminate elements that could harm shareholders' economic interests.

KMH emphasized, "Based on this shareholder agreement, if both sides and shareholders unite their strength and wisdom, we can achieve greater results than those accomplished so far," and added, "At the same time, we will strive to ensure that the outcomes are fully returned to the shareholders."

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