Dongguk CM Completes Acquisition of Ajou Steel... Appoints CEO Hyun-Sik Lee

by Jeong Donghoon

Published 08 Jan.2025 16:45(KST)

Completion of Payment for Existing and New Shares
Change of Major Shareholder to 'Dongguk CM'

Hyun-Sik Lee, CEO of AJU Steel. Photo by Dongkuk Steel.

Dongkuk Steel Group's cold-rolled galvanized and color steel specialist company Dongkuk CM has completed the acquisition of Ajou Steel. This comes six months after the board resolution in August last year to sign the basic agreement related to the acquisition of shares in Ajou Steel Co., Ltd.

Dongkuk CM announced on the 8th that it completed the payment for Ajou Steel's old and new shares on the previous day (7th), and according to the already signed Stock Purchase Agreement (SPA) and Subscription Agreement (SSA), it has fulfilled the mutually agreed precedent conditions, thereby concluding the acquisition. As of the closing date of the transaction, the largest shareholder of Ajou Steel will change to Dongkuk CM.

On the same day, Ajou Steel held a board meeting and appointed Lee Hyun-sik, an inside director elected at the extraordinary general meeting of shareholders last December, as the CEO of Ajou Steel.

Ajou Steel appointed President Lee Hyun-sik as CEO, judging that he demonstrated his capabilities in global business and sales strategy establishment while serving as head of Dongkuk Steel's US branch and sales director of Dongkuk CM, and played a key role in strategic coordination and integrated management as the head of the PMI promotion team, contributing to Ajou Steel's sustainable growth and competitiveness enhancement.

With the completion of the acquisition process, Dongkuk CM will finalize the inclusion of Ajou Steel as a subsidiary by applying to the Fair Trade Commission for affiliate incorporation, and after the regular shareholders' meeting, it will receive delegated voting rights for the shares subject to the transfer.