Dongwon Industries stated on the 14th that it will incorporate its subsidiary Dongwon F&B as a wholly-owned subsidiary. This is aimed at strengthening its global food business. Dongwon Industries expects to create synergy by grouping together four domestic and international food companies.
On the same day, Dongwon Industries and Dongwon F&B held a board meeting and approved the proposal for a comprehensive stock exchange agreement. Accordingly, Dongwon Industries plans to issue common stock to pay Dongwon F&B shareholders at an exchange ratio of 1 (Dongwon Industries): 0.9150232 (Dongwon F&B).
The stock exchange ratio between the two companies was determined in accordance with the enforcement decree of the Capital Markets Act. Once the stock exchange is completed, Dongwon F&B will be incorporated as a wholly-owned subsidiary of Dongwon Industries and will be delisted.
A shareholders' meeting to approve the stock exchange agenda is planned to be held on June 11 (tentative). Dissenting shareholders can exercise their appraisal rights, and the appraisal price has been set at 35,024 won for Dongwon Industries and 32,131 won for Dongwon F&B, based on relevant legislation. The number of newly issued shares of Dongwon Industries will be finalized after the exercise of appraisal rights concludes on July 1.
Dongwon Industries plans to incorporate Dongwon F&B as a subsidiary and group its food-related affiliates such as Dongwon Home Food, Starkist, and S.C.A SA into a "global food division". Through this, the company aims to increase the proportion of overseas sales in its food business from 22% last year to 40% by 2030.
The research and development organization will also be consolidated into a global R&D center. The R&D budget, which was 0.3% (percentage of R&D expenses to sales) last year, is planned to be expanded more than threefold to over 1% by 2030.
The company plans to open up markets in North America and Central and South America through its U.S. subsidiary Starkist. It also intends to collaborate with its tuna fishing subsidiaries in Senegal, including S.C.A SA and Capsen. The company hopes to serve as a foothold for entry into the Middle Eastern and European markets in the medium to long term.
It will also pursue large-scale global mergers and acquisitions. Dongwon Industries believes that M&A for rapid growth will be possible under its leadership.