STX to issue 27.2 million shares to Beomhan Industrial after court approves rehabilitation plan

STX said Tuesday it will issue 27.2 million new shares to Beomhan Industrial, a move that hands the industrial company an expected 94.9 percent stake.

The new shares are priced at 2,500 won each, bringing the total subscription payment to 68 billion won ($50.9 million), according to a regulatory filing. Of that sum, 67 billion won ($50.2 million) is earmarked for debt repayment. The 68 billion won rights issue was carried out as the payment of the M&A acquisition price during the rehabilitation proceedings, and the funds raised will be used to repay rehabilitation secured and unsecured claims.

Beomhan Industrial paid the entire acquisition amount before the court approved the rehabilitation plan. The company was selected as the final acquirer of STX through a public competitive bidding process.

The Seoul Bankruptcy Court approved STX's rehabilitation plan after all rehabilitation secured creditors, or 100 percent, backed it and 91.5 percent of rehabilitation creditors approved, above the legal thresholds of 75 percent and 66.7 percent, respectively.

Before the rights issue, APC PE (Y) was the largest shareholder with a 38.67 percent stake; after the placement, Beomhan Industrial's expected holding reaches 94.9 percent. STX's total issued shares will rise to 28.666 million from 1.466 million, with the new shares scheduled to list on Nov. 6. The board approved the decision on Sept. 16, and the payment date for the new shares is the 12th.

The offering is being carried out as a third-party allotment, meaning the new shares go to a designated investor rather than being offered to existing shareholders generally.

An STX official thanked the creditors who supported the rehabilitation plan, along with shareholders and business partners who kept faith with the company. "We will faithfully carry out the rehabilitation plan and concentrate further on our core business to repay the trust placed in us," the official said.