Sambu Construction Decides 96.3% Capital Reduction Under Rehabilitation Plan, Inevitable Dilution for Existing Shareholders
Sambu Construction has received approval of its rehabilitation plan from the Seoul Bankruptcy Court and decided a 96.3% capital reduction by consolidating 27 common shares into 1 share.
The record date for the consolidation is June 30, 2026, followed sequentially by debt-to-equity conversion, additional share consolidation, and a third-party allotment capital increase.
Existing shareholders face severe dilution of equity value due to the consolidation, cancellation of fractional shares, and subsequent capital increases.
[AI Summary]The mandatory capital reduction under the rehabilitation plan and subsequent capital expansion inevitably lead to significant dilution for existing shareholders, with the success of the rehabilitation being the key determinant of stock price.