Korean chemical materials manufacturers Kolon Industries and SKC have sold their stakes in SKC Kolon PI, a polyimide film maker, for some 300 billion won ($250 million) in a bid to acquire seed funding to nurture new businesses, according to the two companies on Monday.
Kosdaq-listed SKC Kolon PI is a joint venture established by Kolon Industries and SKC in 2008. It is the world’s largest polyimide film company, with 30 percent market share in the sector. PI film is utilized in various electronic devices and components, such as smartphones and semiconductors.
A SKC Kolon PI factory in Kumi, Gyeongbuk Prince (SKC Kolon PI)
The two companies’ 27.03 percent stakes, worth 303.5 billion won, in the PI film maker were sold to Korea PI Holdings, an investment company owned by the local firm Glenwood Private Equity. The stake sale came after three counterparts made an agreement on the deal in late December.
With the stake sell-off, Kolon Industries said it considers to beef up its fast-growing aramid fiber and transparent PI film businesses. Aramid fibers are used for protective gears, such as fire-resistant armor or bulletproof vests, while transparent PI films are essential parts of foldable and flexible displays. The company is also expected to invest in R&D projects for components linked to hydrogen fuel cell technology and to beef up manufacturing lines for petroleum resin.
“While trying to achieve organic growth with its internal capabilities, it will also seek for inorganic growth via M&As and strategic partnerships,” said Jang Hee-goo, CEO of Kolon Industries, in a press statement.
By Kim Young-won (email@example.com)