Corrects errors. In the morning posting (a merger between SK

Corrects errors.

In the morning posting (a merger between SK Innovation and SK E&S), Inno mentioned that he would choose the asset value rather than the stock price (base market price) as the merger price, but he chose the stock price based on the merger announcement a while ago.

Inno's stock price is 112,396 won and its asset value is 245,405 won.  
The merger price of E&S is 133,947 won with an essential valuation.
Accordingly, the merger ratio was set to be 1 to 1.19. This is a method of allocating INNO 1.19 per E&S.  

Inno has a PBR of only 0.5. The asset value is inevitably calculated much higher than the stock price. It was thought that a company of Inno's level would calculate the asset value as the merger price in consideration of general shareholders, and the result of the report was also the asset value.  

If Inno chose the asset value, the merger ratio would be 1 to 0.55. You can give Inno 0.55 shares per E&S share.  

Still, why didn't Inno choose the asset value?
In a merger between a listed company and an unlisted company, the listed company can choose the asset value if the asset value is higher than the stock price.

At this time, the explanation given by companies that do not choose asset value is set in a fixed framework. Inno's explanation is also within that framework (as stated in the disclosure)  

By the way, this choice has left general shareholders looking a bit annoyed.

Both companies are subsidiaries of holding company SK. SK's stake in E&S is far higher. E&S has also received trillions of won in investment (RCPS) from FIs in recent years.

Inno will explain that he chose the stock price because the stock price formed among the majority in the market better reflects the corporate value, but the above reasons will reduce the persuasive power of the explanation.