SKC Kolon PI, a joint venture between SKC and Kolon Industries, was sold to Glenwood Private Equity in Korea. The total proceeds from the sale are 608 billion won.
According to the Seoul Economic Daily, SKC and Kolon Industries held a board meeting on Tuesday and signed a deal to sell their 27.03 percent stake each held to KoreaPI Holdings for 304 billion won, according to the Seoul Economic Daily. KoreaPI Holdings is an investment- purpose company established by GlenwoodPE. Once the related procedures are completed by February next year, SKC Kolon PI's managerial rights will be completely transferred to KoreaPI Holdings.
SKC Kolon PI was established in 2008 by Kolon Industries and SKC in a 50-50 ratio by separating each company's PI film business. PI film, which has excellent heat resistance and flexibility, is widely used in smartphones, semiconductors and displays, but there were barriers to entry due to high initial investment, development costs and technical difficulties. Although Japanese companies were dominating the market, Korean companies made a strategic decision to increase their global competitiveness.
In response, SKC Kolon PI surpassed Japanese companies from the third place in the world when it was established. Recently, 5G mobile communications equipment, foldable phones and flexible organic light-emitting diode (P-OLED) are on the rise, which is considered to have high growth potential. PI film is also receiving spotlight as a material for electric vehicle batteries.
The two companies put job security as an important contract condition, and GlenwoodPE also agreed to raise the company by guaranteeing it,” it said. “SKC Kolon PI, which will receive a single major shareholder, has new growth momentum.” said a representative for SKC Kolon PI. “If it responds quickly and flexibly in rapidly changing markets such as foldable phones, 5G mobile phones, and electric vehicle demand increase, it will take a step forward.”
Kolon Industries will invest the funds secured from the stake sale into investment in new businesses, including Aramid and transparent PI Films, as well as revamping its business structure, including financial structure and M&A.
Source: peninsulatimes