E&Corporation Expands Major Shareholder Stake... "Strengthening Responsible Management"

[Asia Economy Reporter Jang Hyowon] EN Corporation announced on the 18th that it converted and exercised convertible bonds totaling 1,238,163 shares and stock acquisition rights totaling 2,731,245 shares, amounting to 10.9 billion KRW.

Among these, the convertible bonds and stock acquisition rights held by a special relation of the largest shareholder, JSI Company, are 1,019,664 shares and 2,731,245 shares respectively, amounting to 10.3 billion KRW, which accounts for the majority of the conversion and exercise volume this time.

With this conversion and exercise, the shareholding ratio of EN Corporation’s largest shareholder and special relations increased by about 4.6%, from the previous 35.28% (15,901,589 shares) to 39.84% (19,611,076 shares), thereby further solidifying their position as the largest shareholder.

A company official explained, “The convertible bond claims and stock acquisition rights exercises by special relations express confidence and assurance in our future growth, having succeeded in building an industrial water treatment platform, and show a strong will to further strengthen the responsible management system. In particular, this conversion (exercise) resolves the overhang issue related to bonds and simultaneously lowers the debt ratio, securing financial soundness.”

EN Corporation has successfully established a comprehensive industrial water treatment platform by acquiring Hanseong Cleantech, which operates the industrial water treatment EPC business, starting two years ago, acquiring the liquid designated waste treatment business through subsidiaries EN Water Solution and Eclean Water, and successfully acquiring Daeyang Enviro, a specialized water treatment O&M company.

In particular, Hanseong Cleantech, a subsidiary of EN Corporation, is currently carrying out a national project aimed at domestic production of ultrapure water, an essential technology in semiconductor manufacturing processes monopolized by Japan. Having completed the first phase of the demonstration plant and currently conducting pilot operations, it plans to start full-scale orders after completing the trial operation by the end of this month.

Through this, EN Corporation has set a sales target of 400 billion KRW this year, a 30% increase compared to last year. It also plans to pursue additional mergers and acquisitions (M&A), and Hanseong Cleantech, a 100% subsidiary, plans to proceed smoothly with its IPO (initial public offering) targeting 2024.

EN Corporation recorded a cumulative consolidated sales of approximately 226.1 billion KRW up to the third quarter of last year, showing a significant growth of 133% compared to about 96.9 billion KRW in the same period the previous year, and is expected to record the highest sales in its history ahead of the performance announcement scheduled for March.

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