[Asia Economy Reporter Jang Hyowon] Lithium Plus is set to become the largest shareholder of Korea SE. Korea SE will hold an extraordinary general meeting next month to change its company name and officially launch its lithium refining business.
On the 29th, Korea SE announced through a public disclosure that Lithium Plus will rise as the largest shareholder. Lithium Plus will acquire 2,813,637 existing shares that GP Club was scheduled to purchase.
The company stated, “Based on high technological capabilities and a favorable market outlook, we have secured all funds for the acquisition price and the capital increase,” adding, “We are also considering early payment of the acquisition price to dispel concerns about our acquisition intent and financial capability.”
Along with the change of the largest shareholder, the subscriber for the third-party allotment capital increase of 7 billion KRW will also be changed to Lithium Plus. The total 50 billion KRW of convertible bonds (CB) and bonds with warrants (BW) issued to GP Club will proceed as originally planned.
A Lithium Plus representative said, “We decided to directly acquire the company to expand the lithium refining business and to strengthen swift decision-making and expertise,” adding, “The first plant in Geumsan-gun, Chungnam, which is currently in the final stage of mass production preparation, will be operated through a merger with Korea SE in the future.”
They continued, “We are also reviewing additional investments in lithium hydroxide production plants centered on Korea SE,” and stated, “We will grow into a global leading lithium specialized company.”
Korea SE will also pursue a company name change at the extraordinary general meeting next month. The name will be changed to ‘Hydro Lithium,’ reflecting its ambitions in the lithium business, transforming into a specialized company producing 99.99% high-purity lithium hydroxide for batteries.
Lithium Plus’s Geumsan Plant 1 covers a site area of 26,842㎡ and has nine buildings with a total floor area of 9,420㎡. Discussions are underway to establish joint ventures (JV) with domestic large corporations and overseas partners. This will enable compliance with the global trend of strengthening origin regulations and facilitate entry into the global market through overseas local subsidiaries.
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