[Disclosure Analysis] SIMPAC Completes Holding Company Merger... 'Second-Generation Owner' Choi Min-chan Holding 77 Billion Won Emerges at the Forefront of Management

Stake Skyrockets 0.47% → 21.17%... Forms a 'Two-Power Structure' with Chairman Choi Jin-sik / 'Low PBR (0.6x) and High Dividend' Appeal Highlighted... Rising Expectations for Stock Price Boost to Secure Succession Funds↑
Press and ferroalloy specialized company SIMPAC has finalized its absorption merger with its holding company, formalizing its second-generation owner succession system. With Chairman Choi Jin-sik's eldest son, Senior Managing Director Choi Min-chan, securing a stake worth around 77 billion won and effectively cementing his position as the 'next-generation owner,' the market is paying attention to the possibility of high-dividend policies and stock price boosting to secure funds for the succession.

'Finalizing' the Governance Reorganization... Senior Managing Director Choi Min-chan Becomes the Second-Largest Shareholder
SIMPAC announced through a public disclosure on the 15th that its largest shareholder has changed from the existing 'SIMPAC Holdings and 6 others' to 'Choi Jin-sik and 5 others.' This is a follow-up measure after SIMPAC absorbed and merged with its parent company, SIMPAC Holdings, and completed the merger registration. With this merger, SIMPAC's governance structure has been reorganized into a 'direct control system by the owner family.' The most significant change is the surge in the stake of Senior Managing Director Choi Min-chan, the core of the succession. As the former largest shareholder, SIMPAC Holdings (52.38% stake), was dissolved and new merger shares were issued, Senior Managing Director Choi's stake significantly expanded from 0.47% to 21.17% (13,841,002 shares). The stake gap with the largest shareholder, Chairman Choi Jin-sik (22.63%), is a mere 1.46 percentage points.
Based on the closing price on the 15th (5,600 won), the value of the stake held by Senior Managing Director Choi reaches approximately 77.5 billion won. He has effectively crossed the 90% threshold of management succession solely through the merger, without any separate financial contribution.

Transition to an 'Individual Major Shareholder' System... Dividend Expansion and Stock Price Defense are Inevitable
The financial investment industry forecasts that this governance reorganization will lead to the strengthening of SIMPAC's shareholder return policies. This is because, as the largest shareholder changed from a 'corporation' to an 'individual,' the recipients of dividends are directly linked to the owner family. In particular, for Senior Managing Director Choi, who secured a stake worth tens of billions of won, it is essential to secure a large amount of cash (dividends) for future gift tax payments and interest repayments on stock-backed loans. SIMPAC has already demonstrated its commitment to shareholder returns by setting the settlement dividend for 2024 at 200 won per share (a dividend yield of 5.2%).
An industry official analyzed, "Even for the smooth succession to the second-generation owner, the company has a strong incentive to maintain or strengthen its high-dividend stance," adding, "If the stock price falls, the risk of a margin call (forced liquidation) arises due to the decline in the value of the stock collateral, so proactive stock price defense (boosting) policies at the company level are expected."

40% Discount Compared to Asset Value... 'Absolute Undervaluation' with PBR at 0.6x
The undervalued stock price level compared to the solid fundamentals is also cited as an investment point. Based on the consolidated financial statements for the third quarter of 2025, SIMPAC's total equity attributable to controlling shareholders is 607.4 billion won. Converted by the total number of issued shares (approximately 65.42 million shares), the book value per share (BPS) is 9,285 won.
The current stock price (closing price of 5,600 won on the 15th) is only PBR (Price-to-Book Ratio) 0.60x, which is at the 60% level of the BPS. This means that even if the company were to immediately close down, liquidate its assets, and distribute them to shareholders, they could receive over 40% more than the current stock price.
A market expert diagnosed, "Although the cumulative net profit for the third quarter recorded 16 billion won, succeeding in an earnings turnaround, the stock price still remains in undervalued territory," adding, "As governance uncertainties have been resolved through the merger and the second-generation owner has emerged at the forefront, it is a time when a re-rating of corporate value is expected."
Meanwhile, SIMPAC plans to achieve management efficiency through this merger and, based on this, accelerate its targeting of the global press and ferroalloy markets.