[Asia Economy Reporter Hyungsoo Park] Sinopecs' stock price is on the rise. The news of its merger with Prontec Co., Ltd., a specialized company in fluororesin membrane and polytetrafluoroethylene (PTFE) high-frequency coaxial cables, appears to have influenced the stock price.
As of 9:16 AM on the 10th, Sinopecs is trading at 3,405 KRW, up 12.38% from the previous day.
On this day, Sinopecs announced its merger with Prontec. Through this merger, Sinopecs will acquire technology not only for HEPA-grade air filters but also for ULPA-grade filter technology. Sinopecs is currently the only company worldwide to possess both material technologies simultaneously. Since March last year, Sinopecs has operated the PTFE business through a technology and sales rights acquisition of the ePTFE business unit, a fluororesin membrane, and equipment leasing in strategic partnership with Prontec. PTFE is a special material used in hydrogen fuel cells and air filters.
The per-share valuation was calculated as 2,971 KRW for Sinopecs (par value 500 KRW) and 5,627 KRW for Prontec (par value 5,000 KRW, with 360,000 shares issued). The merger ratio is 1:1.8939751, and 681,830 new shares will be issued. The merger contract is signed on the 10th, creditor objections will be accepted until August 11, and the merger will be completed on September 30.
Sinopecs and Prontec are expected to accelerate the localization of PTFE, a core material for hydrogen fuel cell supports, through this merger.
With the merger of Sinopecs and Prontec, the localization of high-performance PTFE filters used in semiconductor chemical processes, which had been entirely dependent on imports, is also expected to gain momentum.
Sinopecs, which possesses air filter material technology capable of removing 99.99% of fine particles, has established a foundation to expand into special cable fields such as smart car antennas, semiconductors, displays, and medical equipment by merging with PTFE specialist manufacturer Prontec.
Due to its characteristics, PTFE excels in heat resistance, chemical resistance, porosity, and removal efficiency compared to other materials, making its application fields broad, ranging from ultrapure water to displays, biopharmaceutical manufacturing, hydrogen fuel cell supports, and artificial blood vessels.
A Sinopecs representative stated, "Junhan Jeong, CEO of Prontec, is a first-generation pioneer who has directly mastered advanced technologies from Germany and Japan and has pioneered the domestic PTFE material field. Through the cooperation of both companies, we will not only localize but also target related markets."
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