en.Wedoany.com Reported - Sejong Telecom has completed a 28 billion KRW funding through a rights offering to its largest shareholder, with the proceeds to be used for strengthening core business competitiveness and growth investments to accelerate corporate restructuring.
According to information disclosed on the Financial Supervisory Service (FSS) electronic disclosure system (DART) on the 7th, the rights offering was conducted with the largest shareholder, Sejong Co., Ltd., as the target, issuing 4 million new common shares at an offering price of 7,000 KRW per share, representing a premium of approximately 14.4% over the benchmark price of 6,118 KRW. All new shares were subscribed by the largest shareholder, with a one-year lock-up period.
The rights offering did not involve external investors but was directly funded by the largest shareholder. Market analysts believe this reflects the largest shareholder's commitment to responsible management. Previously, Sejong Telecom amended its articles of incorporation at a regular shareholders' meeting, reducing the issuance limits for convertible bonds (CBs) and bonds with warrants (BWs). The decision to have the largest shareholder directly bear the funding, rather than relying on external convertible bonds or third-party investors, is interpreted by the market as a strategy to reduce dependence on external funding.
This fundraising is seen as a continuation of the company's business restructuring. In recent years, Sejong Telecom has focused on divesting non-core businesses to improve its financial health. In 2021, the company sold Content Carrier, which was spun off from its e-commerce business, and spun off its wired communication business into Sejong Networks and its blockchain business into Sejong DX. Currently, the company has reorganized its business capabilities around infrastructure construction projects in power, communications, firefighting, and civil engineering.
While the company's scale has shrunk during the divestiture of non-core businesses, its profitability has been concentrated and improved. Although consolidated revenue declined last year, the scale of operating losses narrowed, and net profit for the period turned positive. However, net profit was also affected by gains from the disposal of investment assets.
The company stated that it plans to use 22 billion KRW as working capital for core businesses such as power engineering, and 6 billion KRW for facility funds related to real estate acquisitions. The specific acquisition targets were not disclosed, but the market speculates it may be to secure land for expanding infrastructure business.
The market believes that this rights offering marks the official entry into the growth investment phase following business restructuring. After cleaning up low-yield businesses and restructuring its business portfolio, the company, backed by funding from its largest shareholder, has secured the investment capital needed to strengthen core business competitiveness. The significance of this rights offering lies not only in liquidity assurance but also in raising funds for growth investments after restructuring. Whether the funds can be translated into improved competitiveness in the infrastructure business and enhanced profitability of core operations will be key to determining the success of the corporate restructuring.
