Sonokong Absorbs Wholly-Owned Subsidiary Sonokong IB via Non-Dilutive Small-Scale Merger; No Share Issuance or Ownership Change, Limited Impact on Shareholders

Sonokong resolved to absorb its wholly-owned subsidiary Sonokong IB via a non-dilutive small-scale merger with a merger ratio of 1:0, issuing no new shares.
The merger aims to enhance management efficiency and maximize synergy. There will be no change in the largest shareholder, and the capital stock and total outstanding shares of Sonokong remain unchanged.
The target subsidiary recorded net income of 19.05B KRW in 2025, but this is already reflected in Sonokong's consolidated financial statements. Its operating loss was 0.29B KRW, indicating low profitability.
As a small-scale merger, appraisal rights are not granted. However, if shareholders holding 20% or more of Sonokong's total outstanding shares object in writing within two weeks of the merger notice, the merger may switch to a general merger.
[AI Summary]This merger is a non-dilutive internal restructuring without any equity dilution or change in control, thus having no direct impact on existing shareholder value. Although the target's profitability is low, there is no additional fundraising or debt increase, limiting investment risk.