Global Sae-A reorganized the governance structure among its paper affiliates to improve business efficiency.
Taelim Paper, a paper affiliate of Global Sae-A, disclosed that on the 7th it acquired 60.14% equity in Dongwon Paper for about 26.5 billion won. In addition to the previously held 39.86% equity, it acquired the equity held by Tailim Packaging(011280), securing 100% equity in Dongwon Paper.
Conversely, the 100% equity in Taelim Board held by Taelim Paper was transferred to Tailim Packaging for about 15.8 billion won. As a result, Taelim Board became a 100% subsidiary of Tailim Packaging.
The transaction focused on aligning business areas and governance among affiliates. Taelim Paper and Dongwon Paper produce base paper, the materials and supplies for corrugated cardboard, while Tailim Packaging and Taelim Board process base paper to produce corrugated cardboard and corrugated boxes.
Previously, equity in Dongwon Paper and Taelim Board was split between Tailim Packaging and Taelim Paper, creating some mismatches in business areas and governance. Through this equity transaction, the base paper business was realigned under Taelim Paper, and the corrugated and packaging business under Tailim Packaging.
Meanwhile, Global Sae-A considered selling its paper affiliates early this year but halted the plan on Jun. 6. It then shifted its business strategy to enhance synergies among the paper affiliates and strengthen market dominance and competitiveness.