On the 7th, Kolon, the holding company of Kolon Group, announced that it would fully absorb its subsidiary, Kolon Mobility Group.
Kolon resolved at a board meeting on the same day to convert Kolon Mobility Group into a 100% subsidiary through a comprehensive stock exchange. The exchange ratio for common shares between Kolon and Kolon Mobility Group has been set at 1:0.0611643 and for preferred shares at 1:0.1808249. Kolon plans to issue new shares for the exchange.
Kolon stated that it would also conduct a tender offer to protect investors in Kolon Mobility Group. After being absorbed as a wholly-owned subsidiary of the holding company Kolon, Kolon Mobility Group will be delisted.
Kolon Mobility Group is engaged in the import car dealership business through its subsidiaries, handling brands such as BMW, Audi, Volvo, and Lotus. Recently, it has returned its JEEP dealership business and is seeking to restructure. Kolon explained that "in the future, Kolon Mobility Group plans to actively pursue new businesses beyond domestic new car sales-focused dealership operations and expand its own brand business."
Kolon Group noted that "this decision on the stock exchange allows for the management efficiency of the wholly-owned subsidiary (Kolon Mobility Group), enabling a more flexible and swift restructuring of the business structure."