Samsung Engineering announces $1.05b rights issue

Korea’s leading engineering company hopes the highly dilutive rights issue will help it to recover its profitability after a failed merger.

Samsung Engineering's battered shares were slammed again on Thursday after the industry heavyweight announced a highly dilutive W1.2 trillion $1.05 billion rights issue to help it turn its struggling business around.

As Korea’s leading engineering, procurement and construction company, Samsung Engineering has relied on oil and gas engineering projects, particularly from the Middle East. But such orders have dried up of late as oil prices have sunk.

Samsung Engineering's share price ended the day down 18.8% at W25,900 as investors dumped the stock after news broke of the dilutive equity raise  the third-biggest rights issue in Asia this year. ...

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