KPX Chemical, a company specializing in fine chemicals (co-CEOs Yang Junyoung, Park Seunggu, and Lee Chansu), announced on the 28th through a public disclosure that its board of directors has resolved to spin off its electronic materials business division through a physical division. This spin-off is a strategic move to secure the independence and growth potential of the electronic materials business, thereby enhancing both corporate value and shareholder value.
Through this physical division, KPX Chemical will remain as the surviving entity, retaining the urethane division, while the electronic materials division will be separated into a new company tentatively named KPX Electronic Materials. The split ratio will be 90.0% for KPX Chemical and 10.0% for KPX Electronic Materials, and existing shareholders will be allocated shares in both companies in proportion to their current holdings.
After the division, the surviving company, KPX Chemical, will be relisted on the Korea Exchange. However, the newly established KPX Electronic Materials will initially launch as an unlisted company, as it does not yet meet requirements such as sales scale. The company plans to grant shareholders who oppose the split the right to demand share buybacks. The target date for the shareholders' meeting approval is November 4, with the division date set for December 1.
A KPX Chemical representative stated, "The new company, KPX Electronic Materials, will aim to meet the requirements for a new listing on KOSDAQ as quickly as possible and pursue an IPO. If the corporate value of the electronic materials division, which has not been fully recognized until now, is reevaluated through a KOSDAQ listing, it will lead to an increase in shareholder value."
The electronic materials business has localized and accumulated technology for materials used in semiconductor and display manufacturing processes. However, it has been pointed out that its expertise and growth potential have not been fully reflected, as it was bundled with the urethane business. With this spin-off, KPX Electronic Materials will launch as an independent electronic materials specialist, enabling the establishment of business strategies and focused management tailored to its characteristics, which is expected to strengthen competitiveness and accelerate growth.
The surviving company, KPX Chemical, also plans to strengthen its specialized and focused management system to suit the characteristics of its existing businesses, such as the urethane division. Through its seven overseas subsidiaries, it aims to enhance competitiveness in the global polyol market and secure management stability, thereby laying the foundation for sustainable growth.
KPX Chemical has set a strategy to establish an agile and flexible decision-making structure through this spin-off, enabling proactive responses to changes in the business environment. The company also plans to increase profitability through efficient resource allocation and to diversify management risks, thereby building a business portfolio that combines both stability and growth potential. The company expects that these measures will lead to a reasonable market evaluation and, in the long term, enhance both corporate and shareholder value.
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