DKME Signals Trading Resumption as Management Dispute Ends

DKME, a KOSPI-listed company whose shares had been suspended from trading for a prolonged period, is seeing a significantly increased likelihood of trading resumption as both the largest shareholder and the minority shareholders' alliance have expressed their commitment to normalizing management.

On March 9, DKME Inc., the main shareholder of DKME, announced that it had recently agreed to actively cooperate with the official public sale process of its major shareholdings, and has signed a contract with Samil PwC, the lead manager, to proceed with the public sale.

DKME Inc. stated, "Although the sale process had been delayed due to differences between the fund's internal GP (general partner) and LP (limited partner), the two parties have recently resolved their misunderstandings and reached a dramatic agreement, and are now jointly moving forward with the sale of the major shareholdings. The minority shareholders' alliance is also actively supporting the public sale of major shareholdings and has agreed to collaborate for the normalization of the company and the resumption of trading."

The DKME Minority Shareholders' Alliance held an extraordinary general meeting on February 27, restructured the management, and plans to faithfully carry out management improvement plans in mutual cooperation with the company and its major shareholders, aiming to secure trading resumption approval from the exchange.

DKME has recently been working to meet the key requirements for resumption of trading, such as enhancing management transparency, improving its internal control system, and strengthening its financial structure. The company itself has cautiously, yet optimistically, expressed its outlook on the possibility of trading resumption.

Seungryun Baek, CEO of DKME, stated, "We are currently in the final stages of preparations for trading resumption. If trading resumes, we expect to be able to demonstrate the company's business competitiveness and growth potential to the market once again."

DKME, together with Samil PwC, the official lead manager for the public sale, is currently accepting bid proposals for the sale of the main shareholdings. The company plans to receive bid prices from participants until March 17 and select the final preferred bidder after that.

An official from DKME Inc. stated, "DKME is a world-class chemical equipment company, specializing in heat exchangers and more. As the majority shareholder, we will responsibly and faithfully participate in the public sale process."

The demands from the 13,000 minority shareholders, who have suffered losses due to the prolonged trading suspension, for a resumption of trading have also grown stronger.

Hyuntae Kim, CEO (inside director) of the DKME Minority Shareholders' Alliance, said, "Countless minority shareholders have faced significant restrictions in exercising their property rights due to the long period of trading suspension. DKME is a top-tier export company generating more than 10 billion won in operating profit annually, boasting the world's best technology. If such a solid company is delisted from the market, it would be a disaster for the minority shareholders, who account for 67% of the total, and a significant loss at the national level. Therefore, the company must be preserved."

Kim also emphasized, "As the company and the majority shareholder are responsibly working toward management normalization, minority shareholders will also contribute to the resumption of trading and stable growth of DKME through constructive cooperation."

DKME is entering a new phase of growth, as the global interest in expanding power facilities, especially in the United States, rises in the wake of the recent AI boom, leading to growing demand for heat exchangers. There is also the possibility of entering the small modular reactor (SMR) business and other new opportunities.

An industry official stated, "Whether trading resumes will be a crucial turning point for DKME's management normalization. If trading is resumed, it is expected that the market will once again evaluate the company's business performance and growth strategy."

DKME is based in Ulsan Metropolitan City and was established in 1981. It has been listed on the KOSPI since 1989 and is a manufacturer of chemical equipment, such as heat exchangers, for the petrochemical industry, with exports accounting for approximately 85% of its business. Despite difficult circumstances, such as a management dispute and trading suspension, the company recorded sales of 131.5 billion won and operating profit of 10.3 billion won last year.

Meanwhile, DKME was granted a management improvement period by the exchange until March 10 for a change of major shareholders, among other improvements. If a public sale contract is signed by the reporting deadline for the management improvement plan (March 19), a substantive review of the listing will be held around mid-April to determine whether trading will resume.

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