Polaris Sewon Converts Polaris Uno CB

"Strengthening Dominance, Alleviating Overhang Concerns"

Polaris Seawon, a specialized automotive air conditioning parts company, announced on the 26th that it will exercise the conversion rights for convertible bonds (CB) worth 9 billion KRW issued by its subsidiary Polaris Uno. The conversion price is 691 KRW, and the expected listing date is February 8.

Through this stock conversion, Polaris Seawon will newly acquire 13,024,602 shares of Polaris Uno. The shareholding ratio will increase from 24.17% to 37.04%. As a result of exercising the conversion rights, the bond balance will significantly decrease from 15.45 billion KRW to 6.45 billion KRW. The overhang issue will also be resolved, and the increased shareholding ratio is expected to strengthen Polaris Seawon’s control over Polaris Uno.

Polaris Uno is a company that exports synthetic hair for African women’s wigs. Polaris Seawon boasts stable sales with an order backlog of 500 billion KRW. Both affiliates support the sustained growth of Polaris Office Group based on stable performance.

In particular, Polaris Office Group has signed an acquisition agreement for Linos, a specialized ICT and fashion brand company. The acquisition price of 42.6 billion KRW and the paid-in capital increase funds will be paid without external financing. This is described as laying the foundation for a new leap forward by establishing a stable governance structure.

Through this acquisition of Linos, external growth and AI (artificial intelligence) technology synergy are expected. Linos has PowerVoice, an AI voice recognition solution technology company, as its subsidiary.

A Polaris Office Group official said, "This conversion request will result in a financial structure improvement effect where debt decreases and capital increases," adding, "It reflects the management’s will to strengthen control through increased shareholding while practicing responsible management."

He continued, "We will strengthen future businesses to maximize synergy among group affiliates, taking this Linos acquisition as an opportunity."

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