IL Chairman Sung-Geun Song Exercises Call Option on 6th Convertible Bond

According to Financial News, future mobility platform company IL announced on the 8th that its largest shareholder, chairman of the board Sung-Geun Song, has exercised a call option worth 1.8545 billion won on the company’s 6th series of convertible bonds. The bonds in question are scheduled to be purchased on March 11.
An IL representative stated, “This call option exercise is intended to proactively manage potential share dilution and overhang risk arising from the conversion of the bonds, and to clearly demonstrate the largest shareholder’s commitment to responsible management.” The representative added, “It is a structural and mid- to long-term decision aimed at resolving uncertainty surrounding the structure of the convertible bonds in advance.”
IL explained that if the convertible bonds were converted by a third party, it could lead to a short-term increase in the number of shares circulating in the market. By having the largest shareholder directly exercise the call option, however, the bonds are managed as a long-term equity holding, which structurally eases supply-and-demand uncertainty in the market.
The company also noted that this call option exercise is viewed as a symbolic step to reinforce responsible management, as the largest shareholder is choosing to bear financial risk directly based on confidence in IL’s mid- to long-term growth strategy and business value. This move is interpreted as prioritizing the enhancement of corporate value and shareholder trust from a mid- to long-term perspective, rather than seeking short-term gains.
Since the company’s listing, Song has consistently expanded his stake and put responsible management into practice. After IL was listed on the Korea Securities Dealers Automated Quotations (KOSDAQ) in December 2019, he acquired a total of 1.15 million shares the following year through the exercise of conversion rights as well as on-market and off-market purchases. Including the latest call option exercise, he has continued to increase his holdings, demonstrating in action the largest shareholder’s conviction in the company’s mid- to long-term growth potential.
With this decision, much of the uncertainty surrounding the convertible bonds is expected to be resolved, while the stability and transparency of the ownership structure are also likely to be strengthened. As the largest shareholder’s stake becomes more secure, the continuity and consistency of decision-making in executing the company’s mid- to long-term growth strategy and advancing key businesses are expected to improve further.
The IL representative said, “This call option exercise is a measure that promptly addresses market concerns related to the convertible bonds and clearly demonstrates the largest shareholder’s commitment to responsible management.” The representative continued, “On the basis of a stable governance structure, we will steadily implement our mid- to long-term growth strategy.”
The representative added, “We plan to focus on enhancing corporate value by making our business performance tangibly visible, and to reward shareholder trust with concrete results.”
Meanwhile, IL has been consistently managing previously issued convertible bonds through early redemption and cancellation. With the latest call option exercise by the largest shareholder, the company is further reducing uncertainties related to the bonds while continuing to enhance shareholder value.

butter@fnnews.com Kang Kyung-rae Reporter