Haesung Industrial Co., Ltd. (KOSDAQ:A034810) signed an agreement to acquire Investment business division of Keyang Electric Machinery Co., Ltd. (KOSE:A012200) for KRW 60 billion on October 7, 2022. Haesung will issue 6,200,559 of common stock and 388,922 of preferred stock under the merger. After the spin-off and merger, the largest shareholder and related parties of Haesung Industrial Co., Ltd. are expected to hold 53.68% (expected) of the total issued shares shares of combined company.

Keyang Electric Machinery Co., Ltd. has no change in its stake before and after the spin-off and merger. Keyang Electric Machinery Co., Ltd. survives with only the remaining business divisions that have not been split. Merger is expected to complete on February 1, 2023.