Conversion Price Adjustment Downward for 4th CB from KRW 456 to KRW 320, Increasing Potential Dilution
The conversion price of the 4th convertible bond has been adjusted downward from KRW 456 to KRW 320 due to a decline in the market price. Consequently, the number of shares issuable upon conversion increases from 10,964,912 to 15,625,000 shares, raising concerns over dilution of existing shareholder value.
The adjustment follows the contractual mechanism, applying the floor price of KRW 320. The adjusted price is effective from June 30, 2026.
[AI Summary]The downward conversion price adjustment increases potential share issuance by 42%, which is negative for existing shareholders. The capital allocation and governance aspects remain neutral.