Business · Markets · 3 hrs ago
Sempio Foods plans to absorb parent Sempio as both shares hit daily limits
Sempio Foods plans to absorb its parent company, Sempio, according to a plan announced after trading closed on Oct.
30.
The two South Korean companies’ shares both hit their daily price limits in early trading on Nov.
2 as investors bought them.
Sempio Foods, which runs the operating business, would remain as the company after the merger.
The change would make Sempio Foods chief executive Park Jin-sun its largest shareholder, with an expected 23.41% stake, replacing Sempio, which now owns 49.4%.
The companies say combining their resources and business functions should improve efficiency and their ability to invest over the longer term.
The merger is also intended to address uncertainty over Sempio’s holding-company status and accounting changes that could make it harder to meet listing requirements.
Sempio is expected to lose that status after a grace period ends on June 30 next year, but no further merger timetable is given.
Sempio Foods plans to absorb its parent company, Sempio, with Sempio Foods remaining as the surviving company.
Both companies’ shares rose to their daily price limits in early trading on Nov. 2 after the merger plan was announced.
The companies said the merger would combine their assets, resources and business functions to improve investment capacity and management efficiency.
Sempio Foods’ largest shareholder is expected to change from Sempio to Sempio Foods chief executive Park Jin-seon.
Sempio said it may face uncertainty over its holding-company status and listing requirements under new accounting rules.
- Who
- Sempio Foods plans to absorb its parent, Sempio.
- What
- The companies announced a merger plan, with Sempio Foods as the surviving company.
- When
- The plan was disclosed after the market closed on Oct. 30; shares hit their daily limits on Nov. 2.
- Where
- South Korea.
- Why
- The companies said the merger would improve investment capacity and management efficiency. It is also intended to address uncertainty over Sempio’s holding-company status and listing requirements.
This story does not have two clearly opposing sides.
After the regular trading session, Sempio Foods disclosed its plan to absorb Sempio.
Sempio and Sempio Foods were both trading at their daily price limits.
- Sempio share price
- 55,600 won, up 29.91% at 9:18 a.m. on Nov. 2
- Sempio Foods share price
- 27,400 won, up 29.86% at 9:18 a.m. on Nov. 2
- Current largest shareholder of Sempio Foods
- Sempio, with a 49.4% stake
- Expected largest shareholder of Sempio Foods
- Park Jin-seon, with an expected 23.41% stake
- Sempio stake held by Park Jin-seon
- 48.58%
- Holding-company grace period
- Ends June 30, 2027
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What people are saying
We are pursuing the merger to keep Sempio Foods, which conducts substantive business activities, as the surviving company and to combine the two companies’ assets and resources, investment and management functions, and manufacturing and sales functions, thereby improving our capacity to respond to mid- to long-term investment needs and our management efficiency.