Amber Capital Korea Acquires Management Rights of LIS... "Additional Large M&A Negotiations Underway"

[Asia Economy Reporter Jang Hyowon] Yawei Precision Laser Korea, the largest shareholder of LIS, transferred the management rights of LIS to Amber Capital Korea on the 22nd.

On the 24th, Amber Capital Korea, based in Hong Kong, announced that it signed a contract to acquire the management rights of LIS at the request of Yawei Precision Laser Korea, a Chinese state-owned enterprise.

LIS is a laser application device specialist company that applies lasers to various industrial fields and was the first domestic company to enter the Chinese market. Its clients include global top 5 laser equipment companies such as Samsung, LG, BOE, CSOT, and Tianma.

LIS fell into a crisis of liquidity shortage due to the reckless management of past executives. Accordingly, Yawei Precision Laser Korea signed a management rights transfer contract based on trust in Amber Capital. Amber Capital Korea nominated director candidates with expertise for the extraordinary general meeting scheduled for January 6, 2022.

Based on this, Amber Capital Korea intends to strive for the normalization of LIS’s management. Meanwhile, LIS recently disclosed a plan for a third-party allotment paid-in capital increase worth 7.5 billion KRW targeting Yawei Precision Laser Korea to secure operating funds.

Yawei Precision Laser Korea promised to continuously inject funds into the company and contribute to expanding sales in China and collecting accounts receivable.

LIS was established in January 2003 for the purpose of equipment development, manufacturing, and sales, and was listed on the KOSDAQ market of the Korea Exchange in June 2011.

In June, LIS acquired T&D, an electric vehicle battery pack manufacturer, entering the electric vehicle market with electric vehicle battery cooling case technology, having Volkswagen and SK Innovation as clients.

An Amber Capital official stated, "Amber Capital is conducting large-scale M&A negotiations besides LIS," adding, "To this end, we acquired a PEF management company and made it a 100% subsidiary."