Major Shareholder Stake Dips to 45.15% Due to CB Conversion Dilution and Pledge Loan Extension
The combined stake of the largest shareholder Paradise Global and its special relations decreased from 45.26% to 45.15% (down 0.11%p) due to dilution from the conversion of convertible bonds (CB), which increased total outstanding shares from 92,405,559 to 92,629,382 (increase of 223,823 shares); the reporting person did not sell any shares.
Out of Paradise Global's 34,767,536 shares (37.53%), 2,700,000 shares (2.91%) are pledged to Woori Bank as collateral (loan of 10.8B KRW), and 750,751 shares (0.81%) are pledged to Hana Bank (loan of 6B KRW, interest rate 4.34%, maintenance ratio 120%). Special relation Jeon Ji-hye also pledged 1,210,827 shares (1.31%) to Shinhan Investment (loan of 10B KRW, interest rate 5.10%, maintenance ratio 140%). Total pledged shares: 4,661,578 (5.03%).
The reporting person holds the stake with the purpose of influencing management, but currently has no specific plans regarding items under Article 154(1) of the Capital Market Act (e.g., director appointments, capital changes, dividends). However, if future operational matters arise, they will act within legal limits to align with the company's management objectives.
[AI Summary]The slight dilution from CB conversion is not a sale, and the pledge extension is a routine renewal of existing loans, posing no immediate new funding burden. Therefore, the impact on stock price and management control is limited, and the disclosure is evaluated as neutral.