Ownership Expansion
Hyundai Steel plans to issue 16,896,001 new shares and swap them with those of Hyundai Hysco at a ratio of 1:0.8577, Will Byun, analyst at the NH Investment & Securities, said. Hyundai Steel shares are worth 73,299 won (US$66.58) per share, while Hyundai Hysco shares are worth 62,873 won (US$57.08) each.
He said, “This means that all of the common shareholders of Hyundai Hysco consenting to the merger will receive 0.8577607 Hyundai Steel shares for each Hyundai Hysco share that they own.
“After issuing the new shares, Hyundai Steel’s number of outstanding shares should total 133,445,785.
“The merger will likely strengthen Hyundai Steel’s market position as an auto plate specialist, with the firm benefiting from the addition of Hyundai Hysco’s overseas steel service centers and auto weight reduction business ,which encompasses hot-stamping, hydroforming, and tailor-welded blank processes,” he said.
He said that the general shareholders will have a meeting on May 28 to approve the merger. The two companies will be officially merged on July 1, and the newly-issued shares will be listed on July 15.