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[Alpha Biz=(Chicago) Reporter Kim Jisun] Shinsegae Engineering & Construction will sell its leisure business division to secure liquidity.
Shinsegae Engineering & Construction Co. and Chosun Hotel & Resort Co. each held a board meeting on the 14th and announced that they have decided to sign an operation transfer contract for Shinsegae Engineering & Construction's entire leisure business sector.
The two companies plan to approve the transfer through a shareholders' meeting in March and complete the related procedures by the end of April.
The leisure projects subject to the transfer this time include ▲ Free CC (18 holes) in Yeoju, Gyeonggi ▲ Trinity Club (18 holes) in Yeoju, Gyeonggi ▲ Aqua Field (within Hanam, Goyang and Anseong Starfield) ▲ Landscape projects.
Shinsegae Engineering & Construction plans to increase financial soundness through capital expansion and debt reduction through this transfer. Additional funds have been secured since the merger of Shinsegae Youngrangho Resort.
When the transfer is completed, Shinsegae Engineering & Construction will have the effect of increasing capital by about 30 billion won. The golf course membership fee of about 2,700 billion won, which is recognized as an accounting debt, has also expired, and the debt ratio is expected to improve significantly (debt ratio of 953% → 400% as of the end of last year).
In addition, it will have additional liquidity with the sale price of about 1,800 billion won.
On the other hand, Chosun Hotel & Resort plans to become a 'Hospitality leading company' by combining hotel business expertise with leisure business.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
