Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = E-Mart is conducting a public offering of Shinsegae E&C stocks and pursuing voluntary delisting.

The public offering price is 18,300 won per share, which is approximately 19% higher than the closing price of 15,370 won per share of Shinsegae E&C on the 26th, the day before the board of directors’ resolution.

E-Mart, which currently owns a 70.5% stake in Shinsegae E&C, plans to secure a stake of at least 95%, which is the requirement for voluntary delisting, through this public offering.

Shinsegae E&C has significantly strengthened its financial soundness by securing liquidity of over KRW 1 trillion this year, and plans to launch full-scale restructuring, including the reorganization of insolvent business sites, based on this.

To this end, it is expected that E-Mart will be able to quickly push forward with strategies such as restructuring the construction business structure and establishing a mid- to long-term business portfolio by establishing an efficient management decision-making system through acquiring 100% of Shinsegae E&C's shares.

However, in the process of business adjustment, such as cleaning up non-performing businesses, additional losses may be incurred due to subrogation and fulfillment of debt guarantees, which may cause the stock price to decline in the short term.

E-Mart decided to pursue voluntary delisting in order to prevent damage to minority shareholders that may arise during this process.

The public offering period is 30 days from today until the 29th of next month, and if the public offering succeeds in securing a stake of 95% or more, the Shinsegae E&C shareholders' meeting will be convened in November to decide on a voluntary delisting agenda.

By Soon-ki Lee(s8789@nspna.com) and Jeonghwa Choi(choijh@nspna.com)

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