Taekwang Industrial Fully Withdraws Controversial Exchangeable Bond Issuance Plan

(Seoul=Yonhap Infomax) Hak Seong Kim – Taekwang Industrial Co., a major South Korean chemical and textile manufacturer, announced on the 24th that it has decided to fully withdraw its plan to issue exchangeable bonds (EBs) backed by treasury shares, following significant controversy.

In June, Taekwang Industrial had resolved to issue exchangeable bonds worth 318.6 billion won ($237 million), with 24.41% of its treasury shares set as the underlying asset. The plan faced strong opposition from shareholders.

Although Taekwang Industrial won a court injunction filed by Truston Asset Management, which sought to block the issuance, the company continued to deliberate on the matter. Ultimately, it decided to cancel the issuance entirely as of today.

hskim@yna.co.kr

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