TONGYANG Decides 2:1 Stock Split to Maintain Appropriate Number of Outstanding Shares, No Change in Shareholder Value
TONGYANG has decided to merge its common and preferred shares at a 2:1 ratio. The par value will be adjusted from 500 won to 1,000 won per share, and the total number of common shares will decrease from 214,244,064 to 107,122,032.
The purpose of the stock split is to maintain an appropriate number of outstanding shares, emphasizing that it is not a capital reduction but a merger that preserves enterprise value.
Fractions of shares less than one share resulting from the merger will be paid in cash based on the closing price on the first listing day. The schedule includes a shareholders' meeting on June 22, 2026, effective date on July 7, and listing on July 20.
Prior to the stock split, TONGYANG plans to cancel treasury shares, which may change the total number of shares before the merger.
[AI Summary]TONGYANG's 2:1 stock split is a structural measure to increase the stock price by reducing the number of outstanding shares. Since the enterprise value is maintained without capital reduction, there is no dilution or loss for existing shareholders. This is a neutral event with limited impact on the stock price.