[Exclusive] SBW Life Sciences Pursues Sale... Corporate Value Increases with Acquisition of Global Company 'Lycra'

[Asia Economy Reporter Jang Hyowon] Ssangbangwool Group will transfer its position as the largest shareholder and management rights of its affiliate SBW Life Science through a third-party allotment paid-in capital increase. The funds raised from the capital increase will be used to acquire the global textile company The LYCRA Company. Through this, they plan to enhance the corporate value of SBW Life Science.

According to the investment banking (IB) industry on the 22nd, SBW Life Science is currently conducting due diligence for the acquisition of The LYCRA Company.

The LYCRA Company is the global market leader in premium spandex, owning brands such as LYCRA, COOLMAX, and THERMOLITE. Last year, it recorded annual sales of $1.2 billion (approximately 1.67 trillion KRW).

After being acquired by the Chinese textile group Shandong Ruyi in 2019 for $2.6 billion (approximately 3.6 trillion KRW), the shares were transferred to Lindemann Asia, China Everbright Limited, and others due to loan maturities, with the Lindemann consortium currently holding the majority of shares.

SBW Life Science is a company that manufactures and sells key components for mobile phone camera modules such as optical filters and Hall sensors. Recently, it established a bio company engaged in immune cell therapy research and development and changed its name from Nanos to SBW Life Science.

SBW Life Science is considering a third-party allotment paid-in capital increase ranging from a minimum of 200 billion KRW to a maximum of 700 billion KRW to raise funds for the acquisition of The LYCRA Company. The largest shareholder of SBW Life Science is Kwanglim, holding 40.66%. Ssangbangwool, the second-largest shareholder, holds 23.57%, and combined they own 64.23%.

Currently, SBW Life Science’s market capitalization is around 350 billion KRW, and if the third-party allotment paid-in capital increase proceeds, Kwanglim and Ssangbangwool are expected to be pushed down to the second and third largest shareholders.

The Ssangbangwool Group appears to have chosen to attract investors who can manage The LYCRA Company well rather than holding the largest shareholder position and management rights of SBW Life Science, aiming to increase corporate value. If the stock price rises afterward, the value of the shares held by Ssangbangwool Group will also increase.

Regarding this, an SBW Life Science official said, “We cannot disclose specific details, and if there are confirmed matters in the future, we will announce them through public disclosures.”