A green light has turned on for the listing of Duksan Navcours, a navigation technology company under Duksan Group that had been stalled by a dual-listing controversy. Ordinary shareholders of parent company Duksan Hi Metal agreed to Duksan Navcours' listing. It became the first case in which shareholders approved a subsidiary's listing after the dual-listing system was revised.
According to Duksan Group on the 29th, Duksan Hi Metal held an extraordinary shareholders' meeting that day and passed as originally proposed the agenda item to push ahead with listing Duksan Navcours. Based on total equity, attendance was 78%, and among them, 92% voted in favor. In particular, 74% of individual shareholders and 72% of institutional shareholders voted in favor.
Duksan Navcours (formerly Navcours) is a company specializing in navigation and anti-jamming technology, founded in 2012. In 2021, Duksan Hi Metal acquired Navcours, bringing it under Duksan Group. The company applied for a preliminary listing review in Nov. last year, but the review was delayed amid a dual-listing controversy.
There is an assessment that Duksan Hi Metal secured legitimacy for the subsidiary's listing through the extraordinary shareholders' meeting. The company garnered general shareholder consent sufficient to satisfy the discussed 3% rule (limiting voting rights on shares exceeding 3% held by the largest shareholder and related parties) and the special resolution plan.
Another factor that led to shareholder consent was that Duksan Navcours is not a company created through a physical division of Duksan Hi Metal's business unit. Duksan Navcours was acquired with a 37.2 billion won investment by Duksan Hi Metal, which also presented a plan to pay 150,000 shares of Duksan Navcours as in-kind dividends after the listing.
A Duksan Hi Metal representative said, "Before the extraordinary shareholders' meeting, we met directly with many institutional investors and individual minority shareholders to explain the need for the listing and shareholder return policies, built consensus, and secured votes in favor," adding, "We will strengthen communication channels for shareholders even after the listing."
Meanwhile, Duksan Navcours counts major domestic defense companies Hanwha Aerospace, LIG Nex1, and Hyundai Rotem among its key clients, and posted 48.5 billion won in revenue last year. Operating profit was about 4.1 billion won. The goal is to list on the KOSDAQ market, with Daishin Securities serving as the lead manager.