STX to Pursue Paid-in Capital Increase and Change in Largest Shareholder: "Securing New Growth Drivers"

Open Competitive Bidding Process
Transitioning to a Defense Export Company

STX announced on November 5 that it will pursue a third-party paid-in capital increase and a change in its largest shareholder.

The company explained that this is a proactive measure to enhance financial stability and shareholder value by attracting new investment, especially as trading is scheduled to be suspended until the end of June next year due to accounting sanctions imposed by the Securities and Futures Commission in July.

STX has appointed EY Han Young as the lead manager and will recruit investors through an open competitive bidding process. Letters of intent for investment must be submitted by 3:00 p.m. on November 19, after which due diligence and investment proposals will be reviewed to select a preferred negotiating partner.

Despite an unstable global environment, STX continues to achieve solid results in its core businesses. This year, the company successfully exported armored vehicles worth 60 million dollars (approximately 86 billion won) to the Peruvian Army. In August, it signed a contract to supply light tactical vehicles with the Peruvian state-owned defense company FAME S.A.C., and in September, it secured a contract to build an oceanographic research vessel for Peru, demonstrating its capabilities in executing defense projects.

STX plans to pursue a series of large-scale defense projects in the future and is transitioning from a general trading company focused on metal trading, such as nickel for secondary batteries, to a defense export company centered on defense materials and defense science technology.

An STX official stated, "This paid-in capital increase is not just about raising funds, but a decision to restructure the company into a more transparent and competitive organization," adding, "Together with new investors, we will strengthen our financial soundness and solidify our position as a global general trading company."

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