The Board of Directors of BGFretail Co., Ltd. (KOSE:A027410) announced the spin-off of convenience store chain unit on June 8, 2017. Under the terms of the deal, the shareholders of BGFretail will be allocated the shares of the newly established company after the spin-off in proportion to the current ownership percentage. After the spin-off, the issued shares of the new spun-off company will be re-listed upon passing the re-listing examination according to the KOSPI Market Listing Regulation of the Korea Exchange. The split ratio between holding company and operating company is 65:35. The record date for allotment of new shares is October 31, 2017. The spun off unit had total assets of KRW 1.1 trillion and total capital of KRW 293 billion on March 31, 2017. The newly spun-off operating entity will be renamed as BGFretail Co., Ltd. and BGFretail Co., Ltd. will be renamed as BGF Co., Ltd. After the equity spin-off, the surviving company will perform the role of a holding company. Businesses including advertising and golf resort operation would be under the control of the holding company BGF. Jaegu Park will step down while Gunjun Lee will be appointed as Chief Executive Officer after the spin-off. New shares will be listed on December 8, 2017. The deal is subject to approval at the general meeting of shareholders to be held on September 28, 2017. As on September 28, 2017, the spin-off was approved by BGFretail Co's general meeting of shareholders. The deal is expected to complete on November 1, 2017.

BGF Co., Ltd. (KOSE:A027410) completed the spin-off of BGF Retail Co., Ltd. on November 1, 2017.