Kolon Industries to split into holding, operating firms

By Nam Kwang-sik
SEOUL, Oct. 15 (Yonhap) -- Kolon Industries Inc., South Korea's leading textile
maker, said Thursday that it will split into holding and operating companies to
streamline its corporate structure and enhance transparency.
Kolon Industries' board of directors passed the plan earlier in the day, the
company said in a regulatory filing. Shareholders will vote on it on Oct. 27.
Starting Dec. 31, Kolon Industries will be separated into two entities -- a
holding company tentatively named "Kolon" and an operating company tentatively
named "Kolon Industries," the company said.
The two new companies are expected to be listed separately on the Korea Exchange
on Feb. 1, 2010, it said.
Shareholders of Kolon Industries will get 28 shares of the holding company for
each 100 shares they own in the textile maker, along with 72 shares of the
operating company.
"The reorganization is designed to streamline the group's governance structure
and to boost shareholders' interest and corporate value by establishing
independent management of each business division," Kolon Industries said.
The envisioned holding company will have seven major affiliates under its wing,
including Kolon Industries Inc., Kolon Engineering & Construction Co., Kolon Life
Science Inc. and three information technology companies -- Kolon I'Networks
Corp., Kolon Benit and NeoviewKolon Co, it said.
The planned operating company will be in charge of manufacturing of chemicals,
industrial materials, films and clothes, it added.
ksnam@yna.co.kr
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