[Alpha Biz= Kim Jisun] Taekwang Industrial announced on July 2 that it will suspend follow-up procedures for its recently proposed issuance of exchangeable bonds (EBs) backed by treasury shares. The decision follows strong opposition from shareholders, including minority investors and labor unions, who claim the plan would undermine shareholder value.
The company stated, “We have decided to halt further steps related to the EB issuance until the court rules on the injunction request filed by Truston Asset Management, our second-largest shareholder.” It also emphasized its commitment to “respecting the opinions of stakeholders and maintaining close communication.”
On June 27, Taekwang’s board approved a ₩320 billion (approx. $230 million) EB issuance backed by 24.41% of its own shares. However, Truston filed for an injunction with the Seoul Central District Court, accusing the board of acting unlawfully. Truston argued that using treasury shares as the underlying asset for the EBs is a tactic to avoid share cancellation, effectively resembling a third-party allotment and diluting shareholder value.
In addition, the Financial Supervisory Service (FSS) issued a correction order on July 1, citing the company’s failure to disclose the bond allocation counterparties in the initial filing.
메디컬투데이 Reporter Kim Jisun([email protected])
[저작권자ⓒ 메디컬투데이. 무단전재-재배포 금지]
