E-MART(139480) will make its subsidiary Shinsegae Food(031440) a wholly owned subsidiary. The voluntary delisting that began with a tender offer at the end of last year has entered the final stage.
E-MART said on the 16th that its board of directors approved making Shinsegae Food a 100% subsidiary through a comprehensive stock swap on the 23rd. After the swap, Shinsegae Food will be delisted. Shinsegae Food shareholders will receive 0.5031313 shares of E-MART treasury stock per one common share.
However, as shareholders who opposed the stock swap exercised their appraisal rights, the treasury shares E-MART will deliver were reduced to 232,447 shares, down 55.7% from the originally planned amount. Shinsegae Food will cancel 837,140 treasury shares, including those purchased through the exercise of appraisal rights, on the 21st.
From December last year to January this year, E-MART conducted a tender offer for Shinsegae Food shares at 48,120 won per share (a 20% premium to the previous closing price), raising its equity to 66.45%. Through the integration, it plans to eliminate the dual-listing structure, simplify the governance structure, and, by escaping listing maintenance expenses and performance volatility pressure, boost business synergies.