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 225 billion won (US$235m). The proceeds from the sale of 4.99 million shares, or 49.9 percent 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 percent from 702 percent, it said. The move is the final step in a series of restructuring efforts to improve the company’s financial soundness.
