Emart said on the 15th it will conduct a tender offer for shares of Shinsegae Food. It plans to make Shinsegae Food a wholly owned subsidiary, then delist it to resolve structural undervaluation and simplify the governance structure.
Emart held a board meeting on the 11th and approved a tender offer for shares of its subsidiary Shinsegae Food. The tender price is 48,120 won per share, which is 20% higher than the closing price (40,100 won) on the 12th, the trading day before the tender offer begins.
Emart, which holds 55.47% equity in Shinsegae Food, plans to acquire all outstanding shares through this tender offer and make Shinsegae Food a wholly owned subsidiary. It then plans to proceed with delisting through procedures and methods permitted by relevant laws and regulations.
The company said the tender offer aims to resolve the structural undervaluation that has kept Shinsegae Food's corporate value from being fully reflected in the stock market. Emart said, "It is to substantially enhance shareholder value by offering minority shareholders an opportunity to recover their investment at a premium price to the market."
Emart also said it aims to address duplicate listings and simplify the governance structure in line with the government's corporate value-up policy stance, thereby improving transparency in corporate operations.
By making Shinsegae Food a wholly owned subsidiary, Emart will unify the decision-making structure and build a system that enables faster and bolder management decisions. At the same time, it plans to maximize synergies and pursue mid- to long-term business restructuring, free from listing maintenance expenses and pressure from performance volatility.
The tender offer period runs for a total of 22 days from Dec. 15 to Jan. 5 next year.