E-MART has completed the final procedures to make Shinsegae Food a 100% subsidiary. If Shinsegae Food proceeds with delisting and is converted into E-MART's unlisted wholly owned subsidiary, the group's restructuring of its food business is expected to gain momentum.
According to the industry on the 23rd, Shinsegae Food disclosed that it held an extraordinary shareholders meeting on the 22nd and passed, as originally proposed, the agenda approving a comprehensive stock exchange contract with E-MART. The scheduled date for the stock exchange is July 23.
Once this process is completed, E-MART will secure all of Shinsegae Food's remaining equity. Accordingly, Shinsegae Food will be delisted from the Korea Exchange's main board and incorporated as E-MART's unlisted wholly owned subsidiary.
Previously, aiming to incorporate Shinsegae Food as a wholly owned subsidiary, E-MART conducted a tender offer in December last year. Through this, it raised its effective voting-rights-based equity stake from 59.4% to 71.2%. Then in March this year, it announced a comprehensive stock exchange plan for the remaining stake, and with approval at this extraordinary shareholders meeting, it has cleared a key step.
Through the stock exchange, E-MART plans to incorporate Shinsegae Food as a wholly owned subsidiary and resolve duplicate listings. The company aims to improve management efficiency and decision-making speed and to expand synergies among affiliates to strengthen mid- to long-term competitiveness.
Shinsegae Food counts E-MART and SCK Company, the operator of Starbucks Korea, as major clients. Its core businesses are food and beverage (F&B) and dining-out operations. Shinsegae Food manufactures a substantial portion of the key bakery and dessert products supplied to E-MART and Starbucks.