SEOUL, Aug. 7 — Kolon Group is accelerating its mobility business overhaul by fully incorporating its automotive distribution arm, Kolon Mobility Group, as a wholly-owned subsidiary. This move streamlines governance and decision-making, a crucial step in expanding its portfolio beyond imported cars.
Kolon Secures Full Control of Mobility Subsidiary
Kolon Co., Ltd. approved a stock exchange plan to make Kolon Mobility Group a 100% subsidiary, enhancing operational efficiency.
- Kolon Group will fully absorb Kolon Mobility Group.
- This aims to simplify governance and speed up decision-making.
- The plan includes a stock exchange for existing shareholders.
- Kolon Mobility Group distributes major imported car brands.
- The company plans to increase domestic new car operations.
Kolon Co., Ltd. finalized its plan to fully absorb Kolon Mobility Group during a board meeting on Aug. 7. Currently holding a 75% stake, Kolon will acquire the remaining shares through a stock exchange. This structural change, effective three years after Kolon Mobility Group’s listing in January 2023, is designed to foster growth and strategic flexibility.
Stock Exchange Details and Investor Protection
The stock exchange involves Kolon issuing new shares to Kolon Mobility Group shareholders. The exchange rate is set at 0.0611643 shares of common stock and 0.1808249 shares of preferred stock per share. To safeguard investors, a public buyback offer will run for approximately one month, starting August 8. The buyback prices are set at 4,000 won for common stock and 5,950 won for preferred stock.
Expanding the Mobility Portfolio
Kolon Mobility Group is a significant distributor of imported car brands like BMW, Audi, Volvo, and Lotus. Following its integration, the group intends to bolster its market responsiveness by increasing the proportion of domestic new car sales alongside its established imported car business. This strategic shift aims to diversify revenue streams and strengthen its overall market position.
Kolon Mobility Group also plans to reduce its issued shares and reorganize its capital structure. This is being done through the incineration of treasury stocks for common and preferred shares, a move that was initiated prior to the main transaction procedures. This ensures a leaner, more efficient financial framework as the company evolves.
