E-Mart has begun a share swap process to make Shinsegae Food a wholly owned subsidiary. As a result, Shinsegae Food will proceed toward delisting after steps to secure the remaining shares.

A filing on Tuesday with the Financial Supervisory Service's electronic disclosure system showed E-Mart held a board meeting and approved an agenda item for a comprehensive share swap with Shinsegae Food.

The share swap ratio is 0.5031313 Shinsegae Food shares per E-Mart share. Shinsegae Food shareholders will transfer their shares to E-Mart, and E-Mart will provide treasury shares it holds as consideration.

Once the share swap is completed, E-Mart will bring Shinsegae Food under 100 percent ownership. Shinsegae Food, a listed company on the stock market, will then shift to an unlisted company after related procedures.

The share swap contract is to be signed on March 11. The shareholder record date is March 25, and the period to notify opposition runs from March 25 to April 8. The share swap date is scheduled for June 8.

E-Mart previously conducted a tender offer from last December to January and secured a 66.45 percent stake in Shinsegae Food. On a voting rights basis, that is 71.18 percent. E-Mart plans to secure the remaining shares through this share swap and establish a wholly owned subsidiary structure.