Dongwon Industries Absorbs Dongwon Enterprise in Merger... "Restructuring of Governance"

After Absorption Merger, Dongwon Industries Becomes a Business Holding Company

[Asia Economy Reporter Minji Lee] Dongwon Group announced on the 7th that it is promoting the merger of Dongwon Enterprises and Dongwon Industries, which serves as an intermediate holding company. The strategy is to simplify the governance structure and enhance management efficiency.

Dongwon Group submitted a "backdoor listing preliminary review application" to the Korea Exchange to promote the merger of the listed company Dongwon Industries and the unlisted company Dongwon Enterprises. Once this merger is completed, the holding company Dongwon Enterprises will be absorbed into Dongwon Industries, and Dongwon Industries will become the business holding company of Dongwon Group. Subsidiaries such as Starkist and Dongwon Loex, which are grandchild companies, will change their status to subsidiaries.

The merger ratio between Dongwon Industries and Dongwon Enterprises is 1 to 3.8385530. The CEOs will be President Myungwoo Lee of Dongwon Industries and President Munseo Park of Dongwon Enterprises, each serving as co-CEOs of the business and holding sectors, respectively.

Until now, Dongwon Group had a somewhat complex governance structure where the holding company Dongwon Enterprises controlled five subsidiaries including Dongwon Industries, Dongwon F&B, and Dongwon Systems, and the intermediate holding company Dongwon Industries held 21 subsidiaries including Starkist and Dongwon Loex.

Dongwon Industries will also implement a stock split through this merger. Currently, the par value of one common share is 5,000 won, which will be split to 1,000 won, thereby increasing the volume of circulating shares.

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