Dongkuk Steel Mill's cold-rolled coated and color plate specialist, Dongkuk CM, has completed the acquisition of AJU Steel. This comes six months after the board approved the basic agreement for the equity acquisition of AJU Steel in August of last year.
Dongkuk CM completed the payment for the existing shares and new shares of AJU Steel on the 7th and announced on the 8th that, based on the signed share purchase agreement (SPA) and new share subscription agreement (SSA), it concluded the acquisition after fulfilling the mutually agreed conditions. As of the transaction completion date, the largest shareholder of AJU Steel will be changed to Dongkuk CM.
AJU Steel also held a board meeting on the same day and appointed Lee Hyun-sik, who was elected as the internal director at the extraordinary shareholders' meeting in December, as the CEO.
President Lee has served as the head of Dongkuk Steel Mill's U.S. subsidiary and the head of sales at Dongkuk CM, and he plays a key role in strategic coordination and integration management as the Director General of PMI promotions. He is regarded as a person who will contribute to AJU Steel's sustainable growth and strengthening of competitiveness.
With the completion of the acquisition process, Dongkuk CM plans to complete the incorporation of AJU Steel as a subsidiary by applying for affiliate inclusion with the Fair Trade Commission, and after the regular shareholders' meeting, it is expected to be granted the authority to exercise voting rights over the transferred shares. Dongkuk CM stated that it plans to focus on improving the financial soundness of AJU Steel, which has completed capital expenditures (CAPEX) for a certain period in the future.