The Board of Crown Confectionery Co., Ltd. (KOSE:A005740) announced the spin-off of food division to its shareholders on October 21, 2016. Shareholders of Crown Confectionery will receive shares of Food Division proportionate to the shares held in Crown Confectionery. The ratio of surviving company after spin-off is 0.66003 and the ratio of newly established company after split-off is 0.33997. Upon completion, the food division will take the name of Crown Confectionery Co., Ltd. and the remaining division will operate as Crown Haitai Holdings Co., Ltd. The demerger plan requires approval in a shareholders' meeting due on January 25, 2017. The spin off due date is March 1, 2017. The date of spin off registration is March 3, 2017.

The newly established company is expected to be re-listed on the Korea Exchange KOSPI market after going through the re-listing assessment after changing its name into Crown Haitai Holdings Co., Ltd. Crown Confectionery Co., Ltd. will transition into a holding company, in order to maximize the management efficiency and transparency and will do a reverse stock split. Dura Foods Co., Ltd will be the largest shareholder of the new entity. The record date was decided as November 30, 2016. Closing of the registration of shareholders duration will be December 1, 2016 to December 9, 2016. On January 3, 2017, the date of shareholders meeting was changed to January 26, 2017. As of January 26, 2017, the shareholders of the distributing company approved the deal.

Crown Confectionery Co., Ltd. (KOSE:A005740) completed the spin-off of its food division for approximately KRW 270 billion on March 1, 2017. Jang Wan-soo will retain his position as co-chief executive officer after the spin-off. Shin Jung-hoon, the Chief Executive Officer of Haitai Confectionery, will continue to head the company. Change listing and re-listing plan will be executed on April 11, 2017. The value of shares with value less than 1 share (fractional shares) will be calculated according to the last price of the first day of the re-listing date of the new shares of the newly established company after the spin-off and will be paid in cash.