[Market Focus] KCC Drops on Announcement of 9.9% Treasury Shares Exchangeable Bond Issuance

As of 9:30 a.m. on September 24, KCC's stock price on the Korea Exchange was down 13.55% from the previous day's closing price, trading at 135,000 won. This decline appears to be due to the company's announcement that it will issue exchangeable bonds (EB) backed by 9.9% of its treasury shares.

On this day, KCC disclosed its plan to utilize treasury shares equivalent to 17.2% of its total issued shares. The company will retire approximately 350,000 shares (3.9%), which is favorable to general shareholders, over the fourth quarter of this year and the first quarter of next year.

However, KCC will issue exchangeable bonds in the fourth quarter of this year using about 882,300 shares (9.9%) of its treasury shares as collateral, and contribute approximately 300,000 shares (3.4%) to the in-house employee welfare fund over the fourth quarter of this year and the first quarter of next year.

Amid active discussions in the National Assembly regarding an amendment to the Commercial Act that would mandate the retirement of treasury shares, there is a prevailing view that KCC's latest announcement has fallen short of shareholders' expectations.

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