Century's Absorption Merger with Wooyang Fishery Leads to 422% Dilution, Existing Shareholders' Stake Plummets to 8.8%
Century will issue approximately 25.2 million new shares to absorb Wooyang Fishery, causing a 422% dilution relative to existing 5.97 million shares. Existing shareholders' stake will shrink to just 8.8%.
The merger aims to combine business capabilities and generate synergy; Wooyang is a profitable private company with hotel/leisure and fishery operations, reporting net income of about 28 billion KRW in 2025.
Post-merger, the largest shareholder group will hold 91.18% of shares, and new shares will be subject to a one-year lock-up. Wooyang is a private entity with low transparency.
[AI Summary]Century seeks to enhance corporate value through the merger, but existing shareholders face severe 422% dilution. The merger ratio was calculated per regulations, but litigation risk and share appraisal rights conditions warrant caution. Future stock price outlook depends on synergy realization and governance stability.