Korea's seafood giant Dongwon Industries on Wednesday said its completed merger with Dongwon Enterprise has given their parent Dongwon Group a new holdings company.
Dongwon Industries on the same day scheduled a board meeting to finalize the merger.
Earlier on Sept. 14,
the company held an extraordinary shareholders meeting to approve the merger contract with Dongwon Enterprise, which had served as the group's holding company.The merger means 6,318,892 new shares will be issued on Nov. 16.
Also at Wednesday's meeting, Dongwon Industries CEO Lee Myoung-woo will be named the new company's chief of business affairs and Dongwon Enterprise CEO Park Moon-su will supervise holdings.
External director Kim Joo-won will be appointed as board chairman.
Dongwon Industries was founded in 1969 as the flagship company of Dongwon Group.
As a result of the merger, Dongwon Industries will incorporate as subsidiaries Dongwon Enterprise affiliates Dongwon F&B and Dongwon Systems.
Dongwon Industries' logistics affiliate Dongwon LOEX and the American tuna brand StarKist are also sub-subsidiaries of the holding company.
In a nutshell, major group affiliates now have simple horizontal structures centered on Dongwon Industries.
This should bode well for the company's annual operating profit, which is expected to nearly double from 260 billion won($183 million) to 510 billion won, and its fund liquidity growth.
"To streamline the unproductive work environment of Dongwon Industries, which played the role of intermediate holding company with Dongwon Enterprise, the merger has set as its ultimate goal the creation of a system for making faster business decisions for core affiliates such as sub-subsidiaries Dongwon LOEX and StarKist," said a company source.
"The change in business ownership will enable the company to quickly make large-scale investments in the future growth business lines of its affiliates."
Write to Kyeong-Je Han at
hankyung@hankyung.com
