 |
[Alpha Biz=(Chicago) Reporter Paul Lee] Taeyoung Engineering & Construction is struggling with an untimely "workout rumor." Stock prices plunged as rumors circulated around the stock market that Taeyoung Construction's legal team has been looking into applying for a workout program since the 13th.
According to the Korea Exchange on the 15th, the stock price of Taeyoung Construction fell nearly 20% in two days. Stock prices closed 6.57% lower than the previous day as rumors of a workout application circulated on the 13th.
The company hurriedly stated that the rumor was "groundless," but the decline in stock prices did not stop. Shares closed at 2,890 won, down 11.62% (380) from the previous day.
"The second and third quarters of this year have been performed well, and Start-up Chairman Yoon Se-young has also returned to management," a Taeyoung E&C official said. "Above all, a contract for the sale of Taeyoung Industries, an affiliate, has recently been signed, and it is certain to provide liquidity support when the proceeds from the sale comes in this month."
It is not the first time that rumors of financial difficulties of Taeyoung Construction have spread to the market. In September, rumors of a crisis erupted when a construction company was cited as the main character of a media report that "a large construction company asked the financial authorities for help with the liquidity crisis and the government asked the financial sector to give emergency money."
Meanwhile, SBS shares soared on rumors that Taeyoung Construction is preparing for rehabilitation procedures. Expectations that Taeyoung Construction may sell its subsidiary to secure funds if it goes under court receivership are interpreted as stimulating investor sentiment. Taeyoung Construction is a key affiliate of TY Holdings, a SBS holding company.
Shares of SBS rose 4.17% on the 13th from the previous day and closed at 27,700 won, up 5.52% on the same day.
SBS was rumored to be sold last year, and its stock price rose day after day.
The broadcasting industry believes that Taeyoung Group is unlikely to sell SBS.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
