Estraffic announced on the 6th that, following a board resolution, it has decided to acquire the entirety of LS Electric's railway signaling business division for 74.536 billion won.

Aiming to Create Synergy and Expand Business Scope The purpose of this business acquisition is to create synergy by combining it with Estraffic's existing railway signaling business and to enhance corporate value. The company stated, "We expect to increase sales and profitability through business expansion and synergy creation."

Acquisition Worth 74.5 Billion Won... External Evaluation Deems It 'Appropriate' As of the end of 2025, the target business division has assets of 69.86927 billion won, liabilities of 29.36664 billion won, and annual revenue of 78.44698 billion won. This represents 40.42% of Estraffic's consolidated assets, 46.63% of its revenue, and 41.59% of its liabilities. The external evaluation firm, Hanul Accounting Corporation, applied the Discounted Cash Flow (DCF) method to estimate the value of the division at between 71.131 billion won and 78.548 billion won, and concluded that the planned acquisition price (74.536 billion won) is appropriate. However, this acquisition price was calculated assuming the transaction closes as of June 30, 2026, and the final amount may fluctuate depending on the net asset value at the actual closing date and cash inflows and outflows arising from the contracts subject to transfer.

• *Deposit and Balance Payment Schedule**
• Estraffic plans to pay the total acquisition price in installments, divided into a deposit and balance payments.
• Deposit of 1 billion won: To be paid on August 6, the contract date.
• First balance of 3 billion won: To be paid on September 30, the acquisition reference date.
• Settlement of 70.536 billion won: To be paid in installments after the transaction closes, reflecting the net asset value of the acquired assets.
• The funds will be raised using cash on hand and receivables collected from the acquired assets.

Conditions for Completion, Including Special Resolution at General Meeting This transaction will take effect only upon passing a special resolution at the extraordinary general meeting of shareholders scheduled for September 16. If the agenda is rejected at the meeting, the contract will be terminated and the balance will not be paid. Additionally, a condition was attached allowing Estraffic to terminate the contract if the total purchase price the company must pay due to the exercise of appraisal rights by dissenting shareholders exceeds 5 billion won. Meanwhile, the acquisition reference date is scheduled for September 30, 2026, but may be subject to change depending on consultations with relevant authorities and approval procedures.