Kolon Industries Decides Cash-Based Stock Exchange to Make Kolon Glotech Wholly Owned

Kolon Industries decides cash-based stock exchange to make Kolon Glotech a wholly owned subsidiary. Exchange ratio 1:2.3635812, cash payment per share 222,127 won (total approx. 1 billion won; 0.031% of Kolon Industries' standalone net assets).
Kolon Industries holds 99.8% of Kolon Glotech shares; this exchange secures full control. No new shares issued, thus no dilution for existing shareholders.
Proceeded as a small-scale stock exchange (Korean Commercial Act Article 360-10), no shareholder meeting needed for Kolon Industries. However, if shareholders holding 20% or more oppose, the contract may be rescinded (objection period: May 22–Jun 5, 2026).
External appraiser confirmed fairness of exchange price and ratio. Exchange price of 222,127 won set at the maximum of the valuation range (217,989~222,127 won).
Kolon Glotech completed cancellation of 467,821 treasury shares (Mar 10, 2026). Treasury shares to be acquired from dissenting shareholders' appraisal rights also planned for cancellation (Jul 9, 2026).
No appraisal rights for Kolon Industries shareholders (small-scale exchange). Kolon Glotech shareholders granted appraisal rights (exercise period to be announced later).
This exchange provides liquidity opportunity for Kolon Glotech minority shareholders, who held unlisted shares since the 2001 split.
Tax special exception not applicable: Kolon Glotech shareholders may be subject to corporate/capital gains tax on transfer gains. Securities transaction tax of 0.35% applies.