KOLMAR Korea Fully Acquires ‘Yeonwoo’ as a Wholly Owned Subsidiary... "Enhancing Shareholder Value"

On the 19th, Kolmar Korea held a board meeting and announced that it will proceed with a comprehensive stock swap to incorporate Yeonwoo, a KOSDAQ-listed subsidiary manufacturing cosmetic containers, as a wholly owned subsidiary.

KOLMAR Korea. [Photo by KOLMAR Korea]

The scheduled date for the stock swap is February 14 of next year, with an exchange ratio of 1 to 0.2915837.

A comprehensive stock swap is a legal system under the Commercial Act where, through a stock swap agreement between companies, all issued shares of the subsidiary are transferred to the parent company, and the subsidiary’s shareholders receive new shares of the parent company.

Through this stock swap, Kolmar Korea will secure the remaining 45% of Yeonwoo shares in addition to the existing 55% stake. Shareholders opposing the stock swap can request a buyback of their shares until January 8 of next year.

Once the stock swap is completed, Yeonwoo will be delisted in consultation with the Korea Exchange.

Kolmar Korea explained that this move is intended to improve the inefficient governance structure caused by dual listing and to enhance management efficiency through faster decision-making.

As the major shareholder and an original design manufacturer (ODM) of cosmetics, Kolmar Korea will focus on enhancing shareholder value and business activities, while Yeonwoo will accelerate its core operations as a company specializing in cosmetic container business.

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