Korea Technology Acquires Additional Shares through Major Shareholder CB Conversion... "Positive Signal for Resolving Capital Impairment and Exiting Management Stock Status"

[Asia Economy Reporter Jang Hyowon] Korea Technology, a KOSDAQ-listed company, announced on the 29th through a public disclosure that its largest shareholder, Korea Innovation, plans to convert the company's 20th series convertible bonds (CB) into shares.

The 20th series convertible bonds to be converted this time are bearer, interest-bearing, unsecured private convertible bonds with a total amount of 7 billion KRW, and the conversion price is 714 KRW per share. The scheduled listing date is July 18.

Upon completion of the stock conversion, the largest shareholder Korea Innovation will newly acquire 9,803,921 shares of Korea Technology. The shareholding ratio is expected to increase from 14.1% (approximately 17.62 million shares) to 20.3% (approximately 27.42 million shares).

The company plans to make company-wide efforts to improve shareholder value while resolving the temporary capital erosion issue as well as improving the financial structure through this CB conversion.

A Korea Technology official stated, "This CB conversion reflects the largest shareholder's commitment to responsible management," and added, "The additional share acquisition by the largest shareholder will have a positive impact on management stabilization and resolving capital erosion."

Furthermore, the official said, "The additional merger with Daewoo Shipbuilding & Marine Engineering Construction, strongly requested by shareholders, is proceeding according to procedures, including schedule coordination through a law firm," and added, "Along with resolving the capital erosion risk, the company’s undervalued valuation will be reassessed through additional mergers with subsidiaries."

Meanwhile, Korea Technology directly acquired 99.42% of the shares of Daewoo Shipbuilding & Marine Engineering Construction through a merger with Korea Investment Bank on the 16th, meeting the requirements for a small-scale merger that can be approved by the board of directors without holding a general shareholders' meeting.

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