Dongbu Steel Co., Ltd. announced that it expects to receive KRW 965 billion in funding from KG Steel Co., Ltd., Cactus Private Equity Co., Ltd., and other investors
June 11, 2019
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Dongbu Steel Co., Ltd. (KOSE:A016380) announced a private placement of 72,000,000 common shares at a price of KRW 5,000 per share for proceeds of KRW 360,000,000,000 and 24,200,000 common shares at a price of KRW 25,000 per share for proceeds of KRW 605,000,000,000 on June 12, 2019. The company will issue 40,000,000 shares at a price of KRW 5,000 per share to KG Steel Co., Ltd. for gross proceeds of KRW 200,000,000,000 and will issue 32,000,000 shares at a price of KRW 5,000 per share to Cactus Private Equity Co., Ltd. for gross proceeds of KRW 160,000,000,000. The shares will be issued at face value. The method of issuance is third party allotment. The company expects to close the transaction on August 30, 2019. The transaction was approved by the board of directors of the company. The shares issued in the transaction will be subject to a hold period of one year.
KG DongbuSteel Co Ltd, formerly Dongbu Steel Co Ltd, is a Korea-based company mainly engaged in the manufacturing and sale of steel products. Along with subsidiaries, the Company operates its business through two segments. The Steel segment is involved in the manufacturing and sale of cold rolled steel sheets, galvanized steel sheets, pre-coated sheets, tin plate steel sheets, steel pipes and tubes. The Other segment is involved in the port unloading, cargo storage management, rental and transportation. The Company distributes its products within the domestic market and to overseas markets.
Dongbu Steel Co., Ltd. announced that it expects to receive KRW 965 billion in funding from KG Steel Co., Ltd., Cactus Private Equity Co., Ltd., and other investors