The board of Kyungdong City Gas Co., Ltd. agreed to spin-off 95.27% of its city gas business.
As on June 30, 2016, the city gas business (with provisional name Kyungdong City Gas) had total assets of approximately KRW 480.5 billion, total liabilities of approximately KRW 224.4 billion making up the total capital of approximately KRW 256.1 billion. As part of the transaction, Young-hoon Park will replace Jae-Ho Song and Yoonho Na as Chief Executive Officer of the surviving company (with provisional name Kyungdong Invest Co). The transaction is subject to approval from the shareholders of Kyungdong City Gas in a meeting to be held on February 24, 2017. The transaction is effective from April 1, 2017 and has the registration date of April 3, 2017. Listing of the shares is expected to occur on May 12, 2017 while the expected date of delivery of new shares is May 11, 2017.