[Edaily Reporter Park Sun-Yeop ] Donghwa Enterprise ( DONGWHA ENTERPRISE CO., LTD.(025900)) announced on the 15th that it has decided to sell 191,726 shares of its affiliate, M-Park, for 80,001,016,000 won. The sale proceeds amount to 9.09% of the company’s consolidated equity of 880,173,720,000 won as of the end of last year.
This disposal will be carried out by participating in the unequal capital reduction being pursued by M-Park. DONGWHA ENTERPRISE CO., LTD. explained that it decided to proceed with the disposal to secure cash liquidity and recover its existing investment.
Following the sale, DONGWHA ENTERPRISE CO., LTD.’s holdings of M-Park shares will decrease to 441,791 shares. Its ownership stake will also drop from the current 25.51% to 19.28%.
The scheduled date for the disposal is the 21st of next month. This is the first business day following the end of the period for creditors to file objections, and it is the date on which the capital reduction takes effect and DONGWHA ENTERPRISE CO., LTD. receives the proceeds from the reduction.
However, this capital reduction through a paid-in capital reduction must be approved by a resolution at the Empark shareholders’ meeting scheduled for the 16th. The disposal schedule and details are subject to change depending on the outcome of the shareholders’ meeting and subsequent procedures.
M-Park is an affiliate of DONGWHA ENTERPRISE CO., LTD., which operates a used car trading complex.