S-Form will conduct a tender offer for a 10.84% stake in Dongil Steel (002690), a KOSPI-listed company. The move aims to strengthen accountable management by expanding the controlling shareholder's stake.
According to the investment banking industry Friday, S-Form decided to acquire up to 2.2 million shares of Dongil Steel at 1,719 won per share over a total of 22 days, from Saturday through the 20th of next month. The price carries a premium of about 33% over the closing price of 1,297 won on Wednesday. Up to 37.8 billion won will be invested, and if all targeted shares are purchased, S-Form's holding of Dongil Steel shares is expected to rise to as many as 15,111,632 shares, or 74.44%. NH Investment & Securities is managing the tender offer.
S-Form is currently the largest shareholder, holding a 48.17% stake in Dongil Steel. S-Form said the move is "intended to strengthen accountable management as a major shareholder, while establishing a swift and efficient decision-making system to enhance business competitiveness."
Dongil Steel, founded in 1954, is a wire rod processing specialist that manufactures wire ropes, hard drawn steel wire, and galvanized steel wire. It has continued to post operating losses since 2023, recording revenue of 147.3 billion won and an operating loss of 3.5 billion won last year.
Last month, S-Form also conducted a tender offer for an 8.16% stake in its affiliate Sammok S-Form (018310). The purpose was to strengthen accountable management and establish a decision-making system.
