1. What Happened?
Shinseong Tongsang is set to be delisted on September 30, 2025. A sell-off period will run from September 19th to 29th, with the majority shareholder, Canaan Co., Ltd., offering to buy minority shares at 4,100 KRW per share.
2. Why the Delisting?
While official reasons haven’t been disclosed, recent poor performance and deteriorating financial health are likely key factors. Q3 cumulative operating profit has significantly decreased year-on-year, and the debt ratio is rising. The fashion division’s struggles are particularly concerning. Cost savings and increased management efficiency from delisting may also be considerations.
3. How Does This Impact Investors?
- Positive Impacts: Minority shareholders have the option to sell their shares at 4,100 KRW. Delisting could potentially lead to increased management efficiency.
- Negative Impacts: Reduced stock liquidity and limited access to information are major drawbacks. Uncertainty surrounding the company’s valuation also increases. The fairness of the 4,100 KRW buyback price is debatable.
4. What Should Investors Do?
Investors should monitor share price movements during the sell-off period and carefully consider the buyback offer compared to the current market price before making a decision to sell. New investment is discouraged. The difficulties of trading delisted shares should be considered.