Shinsegae Food Delisted, Becomes 100% Subsidiary of E-Mart

Shinsegae Food was delisted from the stock market on the 11th. E-Mart has become a wholly-owned parent company, holding 100% of Shinsegae Food's shares. On this day, Shinsegae Food transitioned to a non-listed wholly-owned subsidiary of E-Mart, with an exchange ratio of 0.5031313 shares of E-Mart common stock for each common share of Shinsegae Food. Existing shareholders of Shinsegae Food will exchange their shares for E-Mart stock at this ratio. This procedure was initiated to eliminate the dual listing structure and simplify the governance structure. Although Shinsegae Food has ended its status as an independent listed company, E-Mart maintains its status as a listed company. Last December, E-Mart conducted a public purchase of Shinsegae Food shares, increasing its ownership stake to 66.45% in January of this year. Subsequently, a comprehensive stock exchange procedure was carried out to secure the remaining shares, which was completed on July 23. According to the Korea Exchange, trading of Shinsegae Food shares was suspended from July 21. On the start date of the trading suspension, Shinsegae Food burned 837,140 of its own shares, with a total value of approximately 32.6 billion KRW. The comprehensive stock exchange is a system that allows shareholders to exchange their shares for shares of another company, and after the procedure is completed, the shares of the target company are not traded separately. Shinsegae Food shares will not be traded on the stock market from the 11th.