SK to purchase majority stake in OCI Materials

SK to purchase majority stake in OCI Materials

SK Holdings said Tuesday it would acquire a majority stake in OCI Materials, the world’s leading supplier of specialty gas used in making semiconductors, displays and solar modules, as it seeks to strengthen its chipmaking business.

SK agreed to purchase a 49.1 percent stake in OCI Materials for 481.6 billion won ($417 million) from OCI, a leading South Korean chemicals manufacturer.

Through the acquisition, SK, newly equipped with a stable supply of base materials and related technology, plans to globally expand its semiconductors business led by its chipmaking unit SK hynix, the company said in a statement.

Meanwhile, OCI said it would inject the newly acquired funds from the deal into boosting growth in its major business segments including solar power, energy store systems and chemical production.

“SK’s acquisition of OCI Materials is noteworthy in that it completes the base materials production portion of its semiconductors business,” said Eugene Securities in a report released Tuesday.

“Given semiconductors companies in China and elsewhere are highly likely to purchase specialty gas from OCI Materials, SK is likely to reap positive, synergetic benefits from the purchase.”

Following the announcement, SK share prices shot up by 3 percent to 258,000 won while OCI’s rose by 0.51 percent from the day before.

Source:http://www.koreaherald.com/view.php?ud=20151124000992

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