KOSDAQ-listed ATUM(355690) will push a large-scale debt-to-equity swap to improve the financial structure of its Vietnam unit and strengthen production competitiveness.
ATUM said on the 20th that, through a board resolution on the 16th, it decided on a debt-to-equity swap to convert $5 million (about 7.444 billion won) of the funds it had lent to its Vietnam subsidiary ATUM VINA into paid-in capital.
This debt-to-equity swap came six months after the $4 million (about 5.7396 billion won) swap decided on Dec. 31 last year. The cumulative amount of debt-to-equity swaps for ATUM's Vietnam subsidiary totals $9 million (about 12 billion won).
A debt-to-equity swap refers to converting the lending that ATUM held to the Vietnam unit into an in-kind contribution and turning it into capital. This can reduce borrowing fund and interest burdens, and expand capital to improve the financial structure.
The Vietnam unit for which ATUM carried out the debt-to-equity swap is operated as a key base for producing transformers for chargers. Through this swap, ATUM plans to raise the local unit's creditworthiness and strengthen operational stability and improve production efficiency to reinforce its mid- to long-term growth base.
An ATUM official said, "As the subsidiary's financial stability has been secured, we will further accelerate management efficiency at the local unit," and added, "We will further enhance our core competitiveness in the global market and work to raise corporate value."