The Financial Supervisory Service requested a corrected registration statement for the SK D&D(210980) paid-in capital increase.
According to the Financial Supervisory Service's electronic disclosure system on the 9th, the Financial Supervisory Service that day requested SK D&D to submit a corrected registration statement for the securities registration statement for a paid-in capital increase filed on the 28th. SK D&D must submit the corrected registration statement within three months.
The Financial Supervisory Service said it requests a corrected registration statement "when it falls under a case that could hinder investors' reasonable investment decisions or cause significant misunderstandings for investors."
Earlier, SK D&D said it would push a rights offering to newly issue 44,680,000 common shares (about 136.7 billion won). That is about 2.4 times the currently issued shares (18,617,392 shares), raising concerns that shareholder value could be diluted.
All the funds raised will be used to repay debt. With the real estate market in a slump, SK D&D had tried to issue bonds to secure resources to repay borrowing fund coming due, but as the "BBB-" credit rating market tightened, it shifted to a paid-in capital increase.
An SK D&D official said, "In the process of in-depth review of various financing options for repayment of borrowing fund, we comprehensively considered the need to improve the financial structure, feasibility, and the rights and impact on existing shareholders, and decided to pursue a rights offering," adding, "In addition, along with the paid-in capital increase, the company is also continuously pursuing various measures to improve its financial structure, such as asset sales and securitization."
Meanwhile, the SK D&D shareholder alliance rallied that day through the small shareholder platform ACT and submitted a petition to the Financial Supervisory Service requesting a focused review of the paid-in capital increase. The shareholder alliance argued, "If existing shareholders' subscriptions are weak, the largest shareholder's equity stake could rise to as high as 92.62%," adding, "Financial authorities should also look at the potential for strengthened control going forward."