SK D&D(210980) is plunging 21% on the 14th on news it will move to improve its financial structure.
As of 9:50 a.m. on the day, SK D&D is trading at 8,720 won on the Korea Exchange, down 2,330 won (21.09%) from the previous session.
SK D&D said in a filing that it held an investor relations (IR) session the previous day and would explain plans to improve its financial structure. In a depressed real estate market, the company aims to secure funds to repay borrowing fund coming due and to secure liquidity and growth capital.
SK D&D said it is pursuing asset sales and securitization, and that it is also considering a rights offering for existing shareholders for a fundamental improvement in its financial structure. However, it plans to finalize specific capital-raising measures after a board review.
The IR will be held on the 15th, targeting shareholders, domestic and overseas investors, analysts, and the media.
Behind SK D&D's move to improve its financial structure is weak earnings. SK D&D's consolidated sales for the first quarter of this year were 70.3 billion won, down 22.4% from a year earlier. It swung to a loss, posting an operating loss of 9.3 billion won.