DL Group's market cap surges after corporate restructuring

DL employees inspect the company's apartment construction site in Busan. / Courtesy of DL Group

By Kim Hyun-bin

• Published Nov 5, 2021 4:28 PM KST
• Updated Nov 5, 2021 5:36 PM KST

By Kim Hyun-bin

DL Group's market capitalization surged almost 30 percent after the conglomerate initiated major corporate restructuring measures.

According to a recent financial analysis of the country's top 30 conglomerates in the third quarter, DL group's market cap was put at 4.62 trillion won, while the conglomerate's financial situation was rated as stable.

The conglomerate streamlined its line-up of affiliates in January this year, spinning of Daelim Holdings and Daelim E&C. Before the spinoff, DL Group's market cap stood at 3.56 trillion won in late 2020, but surged to 4.3 trillion won in early 2021.

In addition, the stock prices of DL and DL E&C have performed robustly, aiding in the 29.8 percent increase in the conglomerate's market cap since October 2020.

DL Holdings' market cap rose 21.3 percent from 1.15 trillion in January to 1.39 trillion won on Oct. 28.

Industry watchers believe when the conglomerate's chemical and construction businesses were based under the same roof it was difficult for them to be recognized for their true market potential.

DL holds a 100-percent stake in DL Chemical, which has been achieving an operating profit of around 80 billion each year. DL also owns large stakes in Cariflex, D Tower, Daelim Energy and Yeochun NCC.

DL Chemical's share price also rose following the acquisition of Kraton. Last September, DL Chemical's board of directors voted in favor of acquiring a 100-percent stake in the U.S. chemical company for $1.6 billion or $46.50 a share.

DL Construction is the only affiliate of DL Group to have shown a reduction in market capitalization, falling from 688.1 billion won Jan. 4 to 660.5 billion won Oct. 28.