Daeyang Metal Acquires and Cancels All 17 Billion Won Convertible Bonds... Strengthening Financial Soundness

Stainless steel cold-rolled sheet manufacturer Daeyang Metal (CEO Jo Sang-jong) announced on the 6th that it has decided to fully purchase and then cancel the 23rd anonymous, interest-bearing, unsecured private convertible bonds worth 17 billion KRW.

After the purchase and cancellation, the number of convertible shares of Daeyang Metal will decrease from the existing 11,789,099 shares to 7,254,557 shares. This is expected to significantly resolve the short-term overhang (large potential sell-off volume) issue.

A Daeyang Metal official stated, “With this convertible bond purchase, we have further strengthened our financial soundness by reducing interest expenses. The cancellation of the acquired bonds is a decision to reinforce responsible management and enhance shareholder value, and the company will continue to strive to stabilize management rights and secure investor trust.”

Daeyang Metal is continuously making efforts to secure financial soundness and efficiency. In May, the company early repaid long-term borrowings worth 50 billion KRW incurred during the acquisition of its subsidiary Youngpoong Paper, reducing its debt ratio and improving interest expenses. The company plans to consider various efficient financial measures to improve profitability, and it is expected that the company’s performance in the second quarter of this year will be better than in the first quarter.

Meanwhile, Daeyang Metal acquired its subsidiary Youngpoong Paper last year to expand its business structure and improve its corporate health, and is focusing on business expansion. Youngpoong Paper produces paper cores and corrugated paper cores used in industrial products such as chemical fibers and films, securing the value chain through vertical and horizontal integration and strengthening business competitiveness. The company aims to establish a collaborative system with Youngpoong Paper this year and implement various co-growth strategies among affiliates.

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