[Market Focus] Kolon Mobility Group Hits Upper Price Limit Again... Four Consecutive Trading Days

Kolon Mobility Group is hitting the daily upper price limit for four consecutive trading days ahead of its full integration as a wholly owned subsidiary of Kolon.

According to the Korea Exchange, as of 9:16 a.m. on September 16, the share price of Kolon Mobility Group was trading at 9,990 won per share, up 29.91% from the previous session. Since September 11, the stock has reached the upper price limit for four consecutive trading days, setting new record highs each day. At the same time, Kolon Mobility Group preferred shares also hit the upper price limit, rising 29.95% to 19,050 won.

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This surge to the upper price limit follows Kolon's decision at a board meeting last month to make Kolon Mobility Group a wholly owned subsidiary, as well as the recent completion of a tender offer for voluntary delisting.

On September 10, Kolon announced that, as a result of the tender offer for Kolon Mobility Group, it had acquired 90.37% of the common shares and 73.51% of the preferred shares. While this amounts to about 66% of the initially targeted volume, Kolon decided to proceed with a comprehensive share swap between Kolon Mobility Group shares and Kolon shares, without any additional tender offer.

The share exchange ratio is set at 0.0611643 shares of Kolon Mobility Group common stock and 0.1808249 shares of preferred stock for each Kolon share. The company plans to delist Kolon Mobility Group in January next year. Kolon stated that, through this full integration as a wholly owned subsidiary, it aims to establish a swift decision-making system and pursue expansion into new businesses.

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