Energy Solutions Becomes Largest Shareholder of Ssangyong Semisysco... "Confident in the First Year of Electric Vehicle Sales" (Comprehensive)

[Asia Economy Reporter Yoo Hyun-seok] Energy Solutions, the largest shareholder of Edison Motors, a specialist electric bus company, is accelerating its acquisition of management rights of KOSDAQ-listed Semisysco.

On the 16th, Semisysco announced that Energy Solutions completed the payment for a third-party allotment paid-in capital increase worth 6.968 billion KRW (1,127,535 shares) on the 15th.

On the 30th, when the shares of the current largest shareholder of Semisysco, CEO Lee Soon-jong, and five others are transferred to DMH and five others, Energy Solutions will become the largest shareholder of Semisysco.

In addition to this paid-in capital increase, Energy Solutions plans to participate in a total of five additional paid-in capital increases amounting to 35 billion KRW to raise its shareholding ratio. After the capital increase, the shareholding ratio will be around 50%. The extraordinary general meeting to finalize the management rights acquisition will be held on July 21.

Having secured a potential largest shareholder status through this capital increase participation, Energy Solutions intends to focus on expanding synergies with Semisysco in the electric vehicle business. Semisysco is engaged in the compact electric vehicle business under the brand "SMART EV Z".

Founded in October 2015, Edison Motors manufactures and sells CNG buses, low-floor buses, and electric buses. It recorded the highest market share of electric buses in Seoul in 2020. Last year, its sales amounted to 89.787 billion KRW.

Edison Motors possesses core electric vehicle technologies such as drive motors, battery management systems (BMS), and vehicle lightweighting technologies. By applying carbon fiber materials to the vehicle body, it significantly reduced weight, and improved the efficiency of the drive motor with MSO coils jointly developed with the Korea Institute of Industrial Technology.

Energy Solutions emphasizes that Edison Motors is prepared to expand its electric mobility business based on its owned technologies. It has systems applicable from compact electric vehicles to electric yachts and small electric ships. Therefore, it plans to enhance Semisysco’s SMART EV Z and expand its additional electric vehicle portfolio to generate substantial sales starting from the second half of the year.

An Energy Solutions official said, "Edison Motors has completed its own design lineup for electric passenger cars and sport utility vehicles (SUVs). We will do our best to make this year the practical first year of the electric vehicle business in cooperation with Semisysco."