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Hansol Group's Bid to Adopt Holding Company Structure Dashed

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Wednesday, July 31st, 2013
SEOUL, KOREA- Hansol Group's bid to turn itself into a holding company structure has been dashed.Hansol Paper Co., a group affiliate, said on July 30 in a regulatory filing that it has scrapped its plan to merge with Hansol CSN after a split as part of a governance restructuring plan. Earlier in April, the group had announced that it would adopt a holding company structure in order to untangle the complicated cross-shareholding and strengthen the power of controlling shareholders.
 
A group official said, "We were going to create a holding company by September this year after splitting the investment and business operations divisions from Hansol Paper and Hansol CSN. But the shareholders of Hansol CSN rejected the proposal in a general shareholders meeting today." In the Hansol CSN general shareholders meeting on July 30, shareholders voted down for reasons that there would be little benefit from the merger given the current low share price."
 
Hansol Group, with 12 affiliates including Hansol Homedeco, Hansol Artone Paper, Hansol Technics, as well as Hansol Paper and Hansol CSN, had been newly designated by the Fair Trade Commission in April this year as a company to be restricted for cross share ownership.

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