Hyosung Chemical will sell a 49% equity stake in its Vietnamese subsidiary.
According to the financial investment industry on the 27th, Hyosung Chemical announced on the 25th that it had decided to transfer a 49% equity stake in its Vietnamese subsidiary, Vinachemical, to the special purpose company (SPC) Hyosung Vina First Stock Company.
After transferring part of the equity, Hyosung Vina First will participate in a paid-in capital increase, resulting in a final 49% equity stake, and the transfer amount has been set at 396.5 billion won. Payment will be made in June.
Hyosung Chemical has also signed a price revenue swap (PRS) contract with Hyosung Vina First. PRS is known as a financial technique utilized by many domestic corporations for capital procurement.
Specifically, if the stock price is lower than the reference price at the time of contract termination, the loss will be covered; conversely, if it rises, the profit can be received as revenue. The contract period is three years.
Hyosung Chemical noted, "We decided to sell part of the equity of our subsidiary, Hyosung Chemical's Vietnamese subsidiary, to secure liquidity and improve our financial structure."