The stock price of Hyosung, the holding company of the Hyosung Group, rose nearly 10% at 10 a.m. on the 17th. Analysts from securities firms interpret that the expectation of synergy between the two affiliates, following Hyosung TNC's decision to acquire Hyosung Chemical's special gas division, has influenced investor sentiment.
At 10:29 a.m. on that day, Hyosung was trading at 51,600 won, up 4,650 won (9.90%) from the previous trading day.
On the 12th, Hyosung TNC held a board meeting and resolved to acquire the special gas division of Hyosung Chemical for 920 billion won. According to BNK Investment & Securities, with the acquisition of Hyosung Chemical's special gas (NF3) production facilities, Hyosung TNC is expected to become the world's second-largest special gas supplier. Research Institute Kim Jang-won noted, “By adding the special gas business, which is expected to have stable revenue based on spandex and high growth potential and profit margins, profitability will improve.” Spandex is Hyosung TNC's main product.
On that day, BNK Investment & Securities raised its target stock price for Hyosung from 62,000 won to 68,000 won. Research Institute Kim explained, “Maintaining a business division with high growth potential and profit margins within the group helps the holding value.”
The industry has noted that Hyosung Chemical has been able to extinguish urgent fires by selling its division under good conditions. Previously, Hyosung Chemical had been negotiating to sell its special gas division to the IMM Private Equity (PE) and Stick Investment Consortium but halted due to differences over price. At that time, there were reports that the consortium had lowered the purchase price to the 800 billion won range.
The holding company Hyosung holds 32.84% and 20.32% equity in Hyosung Chemical and Hyosung TNC, respectively.