[Shin-Min Joon, Edaily Reporter] Huons Global purchased its subsidiary HuM&C’s shares on market and pledged to practice responsible management as a holding company of the Huons Group.

Huons Global CI. (Image=Huons Global)

The company announced on May 22 that it purchased 408,757 shares of HuM&C worth 396,730,488 won through open market purchases from May 14 to 16.

After the share acquisition, Huons Global currently owns 57.92% of HuM&C up 0.83% from 57.09%. Huons Global’s acquisition of subsidiary HuM&C’s shares shows strong commitment to responsible management from the chief executives of Huons Global by expanding its ownership, and increasing shareholder’s value by stabilizing stock prices.

On May 13 HuM&C announced a 5:1 reverse stock split, at a ratio of 80%. The rationale behind the reverse stock split is to compensate for deficit and improve financial standing. The basis date is July 28. Upon completion of the reverse stock split, the capital will be reduced to 4.9 billion won from 24.5 billion won, and the outstanding shares will shift to 9.81 million shares from 49.05 million shares.

HuM&C also approved an agenda on transferring capital reserves to retained earnings to secure profit available for dividend. This will allow for non-taxable dividends to shareholders when the capital reserves are reduced and distributed. The company also expects that acquisition of treasury stock will be possible to enhance shareholder value.

HuM&C reported consolidated revenue of 12.5 billion won in the first quarter, up 4.4 percent on year, and operating profit of 512 million won while its cosmetics business posted revenue of 5.1 billion won, 77.2% increase to the effects of the business acquisition in the second half of last year. In particular, HuM&C expects ramp up of its production facility’s operation in Vietnam in the second quarter to strengthen its competitiveness in the glass business.

HuM&C stated that it will continue to implement shareholder friendly policies to maximize shareholder’s value and channel resources into discovering new growth engines through its continuous efforts to enhance profitability.

Huons Global’s CEO Song Soo young said “We are committed to responsible management as a holding company and the purchase of stake in HuM&C is a part of it. We will continue to support HuM&C to improve its financial standing and ensure stable operations.”

HuM&C has recently completed its investment worth about 8 billion won in its production facility in Vietnam. The company expects full scale production at the new facility in the second quarter which will significantly improve the performances of the glass business.