Jinheung Enterprise will settle the cumulative dividends that have gone unpaid on its preferred shares.

Jinheung Enterprise announced in a regulatory filing that its board of directors convened on the 2nd decided to implement a quarterly cash dividend for preferred shareholders.

The total dividend amounts to 637,631,500 won, with the record date of September 30 and the scheduled payment date of October 21. The dividend applies not to common shares but to the 1st and 2nd preferred shares.

◆ Dividend Details by Share Class

By share class, Jinheung Enterprise Preferred B (1st preferred shares) will receive a dividend of 5,750 won per share, with a market-price dividend yield of 56.4%. The total dividend for the 1st preferred shares is 491,176,500 won.

Jinheung Enterprise 2nd Preferred B (2nd preferred shares) will receive 5,000 won per share, with a market-price dividend yield of 37.5% and a total dividend of 146,455,000 won.

The total number of shares eligible for the dividend is 114,713. Of the total 115,201 preferred shares issued, 488 treasury shares were excluded from the dividend.

Specifically, the 1st preferred shares will pay 5,750 won per share on 85,422 shares, applying a par-value dividend rate of 115%. The 2nd preferred shares will receive a dividend of 5,000 won per share with a par-value dividend rate of 100% on 29,291 shares.

◆ Expiration of Term and Conversion to Common Shares

The company explained that the dividend is intended to pay previously unpaid cumulative dividends on preferred shares. No dividend will be paid on common shares.

Notably, the preferred shares' term also expires on October 21, the dividend payment date. Accordingly, as the conversion requirements are met, Jinheung Enterprise's 1st and 2nd preferred shares are expected to be converted into common shares.

This filing is less a regular dividend and more of a settlement of accumulated unpaid dividends ahead of the expiration of the preferred shares' term. With the preferred shares converting to common shares going forward, changes are expected in the company's issued share structure.

[This article was written based on publicly disclosed corporate filings and does not constitute investment advice or a buy/sell recommendation for any specific security. Dividend schedules and details are subject to change through consultation and processing with relevant authorities, and investment decisions and responsibilities rest with the investor. AI assisted in writing this article.]