Today the boards of directors of the companies South Korean Shipbuilding HD Hyundai Heavy Industries Co. and HD Hyundai Mipo Co., both part of the Hyundai HD Group and both listed on the Korean Stock Exchange, have resolved to merge the two company through an agreement that has been signed today and which provides for the merger by incorporation of HD Hyundai Mipo Co. in HD Hyundai Heavy Industries Co. The report of The merger is set at 0.4059146 shares of HD Hyundai common stock Mipo Co. for each share of HD Hyundai Heavy common stock Industries Co.

Today the largest shareholder of the company resulting from the Casting, HD Hyundai Heavy Industries Co., Ltd., is the HD Korea Shipbuilding & Offshore Engineering Co. (KSOE) with 74.18% of the ordinary shares, while the largest shareholder of the company acquired company, HD Hyundai Mipo Co., is still the KSOE that owns 42.40% of the ordinary shares. The merger is expected to will result in a change in the percentage of ownership of the largest shareholder which will drop from 74.18% to 69.29%.

The merger is expected to be completed next year December 1st.

The two companies explained that the merger aims to create synergies and promote sustainable growth by integrating affiliates operating in the shipbuilding sector. In addition integrating the capabilities and infrastructure of both company, the merged company expects to be able to further expand its shipbuilding activities and to further improve the competitiveness of sales of special vessels and of order acquisition. There is also the Improved ability to respond to rapid changing market conditions and expand the trading base through a shared sales network.