[Featured Stock] Sehwa IMC Rises on Expectations of Structural Improvement After Acquisition by EV Advanced Materials

[Asia Economy Reporter Jang Hyowon] Sehwa IMC is on the rise as expectations for structural improvement have emerged after being acquired by EV Advanced Materials (formerly Act).

As of 1:06 PM on the 2nd, Sehwa IMC is trading at 978 KRW, up 25.55% compared to the previous day.

Last month, EV Advanced Materials announced that it would acquire 31 million shares of Sehwa IMC for 31 billion KRW. The post-acquisition stake is 19.66%.

EV Advanced Materials is focusing on fostering its electric vehicle business by utilizing Flexible Printed Circuit Board (FPCB) technology. FPCB is a fundamental component used in all electronic products, and the company is working on expanding its electric vehicle business by developing sensor components for in-vehicle displays in addition to electric vehicle batteries.

Sehwa IMC supplies more than 80% of its production volume to global tire manufacturers with its own casting technology and optimized facilities in the tire mold business. The company explained that since it has secured local supply capabilities in the United States, China, and Europe, it is expected to create synergy with EV Advanced Materials.

Furthermore, Sehwa IMC plans to reduce its debt ratio. On the 25th of last month, Sehwa IMC announced that it would purchase leased land at a price lower than the market value through a preemptive purchase right and use part of it for sale to repay borrowings and operating funds. With this funding, Sehwa IMC is expected to repay all domestic borrowings.