Daewoo Shipbuilding & Marine Engineering Construction Sells 16 Billion KRW Convertible Bonds to Parent Company... Secures Cash Liquidity

[Asia Economy Reporter Jang Hyowon] Daewoo Shipbuilding & Marine Engineering Construction, a subsidiary of Korea Technology, a KOSDAQ-listed company, announced on the 17th that it secured cash liquidity by selling convertible bonds worth approximately 16 billion KRW.

The convertible bonds sold by Daewoo Shipbuilding & Marine Engineering Construction are the 21st and 22nd series of bearer, interest-bearing, unsecured private placement convertible bonds issued by the parent company Korea Technology, totaling 16 billion KRW.

Daewoo Shipbuilding & Marine Engineering Construction plans to prioritize the proceeds from the sale of these convertible bonds for the smooth progress of its construction sites. As construction accelerates, it aims to generate additional stable cash flow.

It is also reported that most of the conversion rights for these two series of CBs were exercised simultaneously with the sale. Accordingly, the parent company Korea Technology is expected to see an improvement in its financial soundness.

According to the disclosure, the conversion rights for the 4 billion KRW 21st series CB were exercised on the 11th, and for the 11.15 billion KRW 22nd series CB on the 15th and 16th, resulting in approximately 22 million new shares being listed. The conversion prices are 772 KRW and 769 KRW respectively, and the scheduled new listing date is November 28.

A representative of Daewoo Shipbuilding & Marine Engineering Construction stated, “Although concerns about funding difficulties in the construction industry are growing due to the recent real estate project financing (PF) market crisis, our company has no sites financed through PF or corporate bond issuance, so the impact will be minimal. We will continuously seek liquidity securing measures such as this CB sale and conversion right exercise to sequentially overcome the current crisis.”

Meanwhile, according to the quarterly report disclosed by Korea Technology on the 14th, it achieved separate operating profit for two consecutive quarters, with sales increasing by 2.451 billion KRW, operating profit by approximately 2.697 billion KRW, and half-year net profit by approximately 3.13 billion KRW compared to the same period last year.

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