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Photo = Binggrae |
[Alpha Biz= Kim Sangjin] Binggrae is experiencing a sharp decline today (January 31st) after withdrawing its plan to split its business for the purpose of transitioning to a holding company structure.
According to MP Doctor, as of 9:06 AM today, Binggrae (005180) is trading at 70,700 KRW, down 10.05% from the previous trading day.
On January 24th, Binggrae announced, "We believe that more concrete shareholder value enhancement plans are needed before proceeding with the corporate split and transition to a holding company structure." The company further stated, "We have determined that it is more appropriate to proceed after the business direction becomes clearer," and decided to withdraw the plan.
Previously, in November of last year, Binggrae's board of directors had resolved to transition to a holding company structure and conduct a business spin-off to pursue managerial efficiency and establish a foundation for sustainable growth.
The plan was to separate the holding company from the business company, where the business company would independently operate the production and sale of dairy products and other food products, while the holding company would manage the business portfolio. As part of this, Binggrae intended to retire 1,009,440 of its own shares (10.25% of total outstanding shares) through a separate board resolution.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
