Cuckoo Elec to spin off to transform into a holding firm

2017.07.14 14:19:53 | 2017.07.14 16:08:50

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Cuckoo Electronics Co., South Korea’s small electric home appliance maker famous for its electronic pressure cooker, will break up into three business units to transform into a holding structure.

The company announced in a regulatory filing on Thursday that it will spin off its business into its investment, home appliance, and rental units, and transform its investment unit into a holding company. The company expected the reorganization would strengthen the decision-making power of each division and boost overall efficiency and competitiveness.

The demerger would create Cuckoo Holdings from the investment unit and Cuckoo Homesys from the rental unit. Cuckoo Holdings will fully own Cuckoo Electronics and make it an unlisted subsidiary. The newly formed Cuckoo Electronics will engage in the manufacturing and distribution of kitchen appliances, such as electronic rice cookers and induction ranges, and small home appliances, including humidifiers and dehumidifiers.

The reorganization will be discussed in the shareholders’ meeting on October 31 and go into effect December 1.

On Friday, shares of Cuckoo Electronics remained unchanged at 148,000 won ($130).

By Han Woo-ram

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