Korea Rotary Service, a company specializing in real estate rentals, is pushing for a paid reduction of capital.
According to the Financial Supervisory Service's electronic disclosure system on the 23rd, Korea Rotary Service announced that it has decided on a paid capital reduction of 2,349,602 common shares (30.28%) on the 23rd.
The company plans to buy back shares from shareholders, excluding the largest shareholder, at 15,060 won per share and then voluntarily retire them. The per-share value is set at 300% of the weighted average stock price of 5,020 won over the past three years in the K-OTC market.
After the capital reduction, the capital is estimated to decrease from the existing 60.54325 billion won to 48.79524 billion won. Additionally, the number of shares will decrease from 7.76 million to 5.41398 million.
The company noted, "This capital reduction is aimed at normalizing the capital scale and increasing shareholder value," adding that it is proceeding with the reduction regardless of the company's distributable income.
Meanwhile, the shareholders' meeting to approve the capital reduction for Korea Rotary Service is scheduled for Feb. 11 of next year. The period for creditors to submit objections is from Feb. 11 to Mar. 13 of next year.