[Edaily Reporter Park Sun-Yeop ] SillaTextile(001000)announced on the 26th that it has decided to conduct a stock consolidation, merging five common shares into one.
As a result of this stock consolidation, the par value per share will change from 100 won to 500 won. The total number of issued shares will decrease from 24,277,540 common shares to 4,855,508.
The company explained that the purpose of the stock consolidation is “to stabilize the stock price and enhance corporate value by maintaining an appropriate number of shares in circulation.”
This stock consolidation is not a capital reduction that decreases the company’s capital; rather, it is a method that preserves corporate value. Fractional shares resulting from the consolidation—those amounting to less than one share—will be settled in cash based on the closing price on the first day of trading of the new shares.
The stock consolidation proposal will be submitted to the extraordinary general meeting of shareholders on August 7. The effective date for the new shares is August 25, and trading is scheduled to be suspended from August 21 through September 10. The new shares are scheduled to be listed on September 11.