Daelim Industrial Group has been speeding up its plan to have the grandchildren of its founders take over its management, with Vice Chairman Lee Hae-wook at the helm.
At its board of directors meeting on April 22, Daelim Corp., which is the holding company for the business group, approved the plan to merge with Daelim I&S, in which the vice chairman holds an 89.69 percent stake. The merger would reduce the stake held by Chairman Lee in Daelim Corp. to 42.7 percent while those held by the vice chairman will expand to 52.3 percent from 32.1 percent.
With the vice chairman holding the largest stake in Daelim Corp., the management rights of the group have been virtually transferred to the vice chairman, ending the generational transfer of the management rights to the third generation of the founders of the conglomerate. Daelim Corp. owns a 21.7 percent of Daelim Industry, the main affiliate of the group.
The merger procedure will be based on the takeover method in which the stocks of the Daelim I&S will be exchanged with those of Daelim Corp. the basis of 1:4.19, which will be up for shareholder approval at the May 26 meeting.
The merger is slated to be completed on July 1.
Securities analysts said the group considered Daelim I&S taking over Daelim Corp. by buying its shares outright, but it chose to have the two affiliates merged to expand stakes for the vice chairman in a more natural manner. If the vice chairman, the eldest grandson of the owner family, were to take over Daelim Corp. outright, he would have to pay an inheritance tax, which comes to more than half of the value of the company. That is why they chose to merge the two affiliates to boost the stakes owned by the vice chairman to get over the 50 percent mark in a “natural” way.
Essentially, they followed the example of the 2008 merger of Daelim Corp. and Deelim H&L, which is 100 percent owned by the vice chairman to boost his stakes in Daelim Corp.
Daelim Corp. said the company opted for the merger to create management synergy, improve financials and speed up the discovery of new growth engines. Daelim Corp.’s main business lines are logistics and the trading of petroleum products, while Daelim I&S deals with IT businesses. There is a great possibility for the merged firm making great strides in the global market with their combined operations.
Daelim Corp. expects to post turnover of 5.25 trillion won by 2016 and operating profit of 244.2 billion won, which would make it a global developer.
President Kim Jin-seo of Daelim Corp. said the merger has been based on a strategy to maximize synergy and combine the operations of the affiliates.
Daelim Corp. sells petrochemical and specialty chemical products. The company’s petrochemical products include naphtha, olefins, aromatics, C9+, solvents, polyethylene, poly propylene, polybutene and cyclopentane. Its specialty chemicals comprise direct formed Plavis and machined parts for use in aerospace, automotive, electrical and electronics, chemical and mechanical engineering, and semiconductor industries; Ryton PPS, an engineering thermoplastic for application in electricity/electron and home appliance sectors; and K-Resin, a styrene-butadiene copolymer used for injection molding, sheet extrusion, blown and cast film, and thermoforming applications.
_대림 이해욱.jpg)
