Tongyang Major Corp., a flagship company of the long-established cement manufacturer Tongyang Group, said Monday it has sold a stake in its subsidiary to a US-based investment fund for 225bn won (US$235m).
The proceeds from the sale of 4.99M shares, or 49.9 per cent of Tongyang Cement Corp, will be used to improve its financial status.
The sale will reduce Tongyang Major’s debt-to-equity ratio to 260 per cent from 702 per cent, it said.
The move is the final step in a series of restructuring efforts to improve the company’s financial soundness.
Last year, Tongyang Major merged with a construction equipment company that has annual sales of 400bn won.