Kukdo International, a subsidiary of Kukdo Chemical, announced in a regulatory filing on the 27th that it will pursue a paid-in capital increase totaling 100 billion won to fund the acquisition of LG Chem's Daesan BPA business division.

Third-Party Allotment Method... Kukdo Chemical and LG Chem as Allottees

The capital increase will be conducted through a third-party allotment, with the allottees being Kukdo Chemical, the largest shareholder of Kukdo International, and LG Chem. The company explained that the selection of the allottees took into account management purposes and the investors' intentions.

Regarding the use of the 100 billion won in raised funds, 78.437 billion won will be used for the business acquisition. The remainder has been allocated to 7.563 billion won for operating funds and 14 billion won for other funds.

Payment in Two Installments... 10 Billion Won in November 2026, 90 Billion Won in First Half of 2027

Specific issuance conditions, including the number of new shares to be issued, the issue price, and the number of allotted shares, have not yet been finalized. The capital payment will be made in two installments: 10 billion won in the first installment in November 2026, and 90 billion won in the second installment in the first half of 2027. The company stated that the exact payment schedule has not been determined and may change depending on contract negotiations and progress.

The operating funds of 7.563 billion won will be used for raw material purchases and other purposes. By year, 3.563 billion won has been allocated for 2027, 3 billion won for 2028, and 1 billion won for 2029 and beyond. The other funds of 14 billion won are planned to be used for establishing an IT system in 2027 and for various costs other than the business acquisition payment.

Acquisition Price Determined Through Negotiation Between Parties, Referencing Samil PwC Valuation

The target of the business acquisition is LG Chem's Daesan BPA business division. The acquisition price was determined through negotiations between the transaction parties, referencing the valuation results of Samil PwC, an external appraisal firm.

The board resolution date for the capital increase was the 26th. The company explained that it plans to submit corrective disclosures when undetermined matters, such as the capital increase method, new share issuance conditions, and payment schedule, are finalized.