Daesung Hi-Tech Designates Call Option Exercise Rights to Major Shareholder and Securities Firms for 345 Million Won, Aiming for Business Stability
Daesung Hi-Tech Co., Ltd. announced on June 17, 2026, that its board of directors designated four parties as the holders of the call option rights for 1.15 billion won in face value out of the total 15 billion won of its 6th series unsecured private convertible bonds. The designees are NH Investment & Securities, Shinhan Investment, co-CEO and major shareholder Choi Ho-hyung, and Min Jeong-gi, who will pay a total consideration of 345 million won for these rights. This transaction transfers the issuer's right to force the sale of the bonds to the designees.
The consideration for each designee equals 30% of the face value allocated, with Choi Ho-hyung acquiring the largest portion: 650 million won in face value for 195 million won. The final payment is due on March 17, 2027, with a payment schedule of 20% down payment, 30% interim payment, and 50% final payment.
No direct share dilution occurs from this designation, but if the designees convert their bonds, up to 303,509 new shares 1.69% of total shares could be issued at the current conversion price of 3,789 won per share. The call option, if exercised by the designees, could prevent dilution by repurchasing bonds, but the transfer of rights to major shareholders raises governance concerns as it may strengthen their control. No financial soundness indicators were disclosed in the report.
[AI Summary]Daesung Hi-Tech transferred call option rights on its convertible bonds to key stakeholders including the major shareholder, generating 345 million won in cash. This move aims for business stability but could allow the major shareholder to increase his stake beyond the current 18.52%, potentially diluting minority shareholders. Only 1.15 billion won of the 15 billion won CBs are involved, and future exercise of the call option may impact stock price and shareholder value.
KOSDAQ Filing Information
[Correction of Description] Report On Major Issues (Designation Of Person Exercising Convertible Bond Call Option)