Sempio Foods Company and Sempio Foods Company both hit the limit-up on merger news [STOCK NOW]

[Financial News] Sempio Foods Company and Sempio Foods Company both hit the limit-up after announcing an absorption merger.
According to the Korea Exchange, as of 1:45 p.m. on the 2nd, Sempio Foods Company and Sempio Foods Company were trading at 55,600 won and 27,400 won, up 29.91% and 29.86%, respectively, from the previous trading day.
Sempio Foods Company began trading at the limit-up price of 55,600 won from the opening. Sempio Foods Company also opened at its limit-up price of 27,400 won.
Sempio Foods Company held a board meeting on the 30th of last month and decided to absorb its holding company, Sempio Foods Company, in a merger. The plan is to consolidate investment and management, as well as food manufacturing and sales, into a single entity.
Sempio Foods Company will be the surviving company, and Sempio Foods Company will be dissolved. Following the merger, the surviving company will be named Sempio Foods Company.
Sempio Foods Company had faced concerns that it could lose its holding company status after the grace period ends next year because its total assets fell short of the 500 billion won threshold for holding companies under the Monopoly Regulation and Fair Trade Act (MRFTA). However, some say the merger decision could resolve uncertainties arising from changes to holding company regulations and accounting standards.
The merger ratio is 1 for Sempio Foods Company to 2.0881235 for Sempio Foods Company. Approximately 2.088 common shares of Sempio Foods Company are to be allocated for each share of Sempio Foods Company stock. The merger consideration is 21,050 won for Sempio Foods Company shares and 43,955 won for Sempio Foods Company shares.
Sempio Foods Company plans to issue a total of 4,208,546 new common shares as part of the merger.

[email protected] Im Sang-hyeok Reporter