Dongwon Industries has decided to fully integrate its affiliate Dongwon F&B as a 100% subsidiary, pushing its stock price up. The company's blueprint to strengthen its global food business seems to have stimulated investor sentiment.
Dongwon Industries stock traded at 38,450 won in the KOSPI market at 9:06 a.m. on the 15th. The stock price rose by 6.81% (2,450 won) compared to the previous day. In the early trading session, the stock price even surged to 39,100 won. At the same time, Dongwon F&B shares were traded at 34,200 won, up 0.29% (100 won) from the previous day.
Dongwon Industries and Dongwon F&B held a board meeting the previous day and approved the framework for a comprehensive stock exchange agreement. The main point is that Dongwon Industries will issue new common stock to be exchanged with Dongwon F&B shareholders at an exchange ratio of 1 (Dongwon Industries): 0.9150232 (Dongwon F&B). Once the stock exchange is completed, Dongwon F&B will become a 100% subsidiary of Dongwon Industries and will be delisted.
Dongwon Industries plans to hold a shareholders' meeting on June 11 to approve the stock exchange agenda. Shareholders opposing this stock exchange can exercise their appraisal rights. Appraisal rights allow shareholders to demand the company to purchase the shares they hold, with the purchase prices set at 35,024 won for Dongwon Industries and 32,131 won for Dongwon F&B. The number of new shares to be issued by Dongwon Industries will be confirmed after the appraisal rights expire on July 1.
Dongwon Industries will incorporate Dongwon F&B as a subsidiary and group its food-related affiliates, including Dongwon Home Food, Starkist, and S.C.A SA, into a "global food division." Through this, the company aims to increase the proportion of overseas sales in its food business from 22% last year to 40% by 2030.