Tong Yang Life Insurance (KRX:082640) and Woori Financial Group will proceed with their comprehensive share exchange as originally planned despite shareholder appraisal rights exceeding the threshold for terminating the transaction, according to a Tuesday bourse filing.
Shareholders exercised appraisal rights for about 21.9 million shares at 9,356 won apiece, totalling 204.6 billion won, above the 200 billion won threshold that required the companies to review whether to terminate the agreement.
Following the review, the companies decided not to exercise the termination right and will proceed with the transaction as scheduled.
Payment for the appraisal shares is due on Aug. 7. Tong Yang Life shares will be suspended from trading from Aug. 7 through Aug. 28, while the new shares of parent company Woori Financial Group are scheduled to list on Aug. 31.
Woori Financial announced the share exchange in July as part of its plan to make Tong Yang Life a wholly owned subsidiary, a move aimed at strengthening the group's insurance business.