Aekyung Group Integrates Three Chemical Companies... Birth of 'Aekyung Chemical' with '4 Trillion Won Sales Target'

[Asia Economy Reporter Lee Seon-ae] Aekyung Group announced that its chemical subsidiaries Aekyung Yuha, AK Chemtech, and Aekyung Chemical each held board meetings on the 5th and approved the merger agenda of the three companies.

As a result, a chemical company named "Aekyung Chemical (tentative name)" with an annual sales scale of approximately 1.7 trillion KRW as of this year will be established.

The surviving entity after the merger will be Aekyung Yuha, and the stock exchange ratio among Aekyung Yuha, AK Chemtech, and Aekyung Chemical is 1 to 0.68 to 18.26, respectively. Aekyung Group plans to complete the merger by November after undergoing regulatory corporate merger reviews and obtaining shareholder meeting approval by the end of next month.

The largest shareholders of Aekyung Yuha, AK Chemtech, and Aekyung Chemical are AK Holdings, the holding company of Aekyung Group, holding 49%, 81%, and 100% of shares, respectively.

The shareholding of AK Holdings, the largest shareholder of the merged company, will change from 49.44% to 62.23%.

Aekyung Group explained, "Aekyung Chemical aims to maximize synergies of existing businesses and discover new growth engines through mergers and acquisitions (M&A) and research and development (R&D), targeting sales of 4 trillion KRW and operating profit of 300 billion KRW by 2030."

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