HANA Micron decided to fully withdraw its spin-off plan, resulting in a rise in stock prices during the after-market (After-Market·3:40 p.m. to 8 p.m.).
HANA Micron's stocks were traded at 12,100 won on the 29th at Nextrade (NXT) at 5:10 p.m., rising by 7.56% (850 won) from the previous day's closing price. HANA Micron's stock price finished at 11,190 won, down 0.53% (60 won) in the regular market but rebounded in after-market trading. The decision by HANA Micron not to proceed with the spin-off stimulated investor sentiment.
Previously, HANA Micron announced a spin-off plan to separate into a holding company, HANA Semiconductor Holdings, and a semiconductor packaging company, HANA Micron. However, there have been ongoing criticisms that during the spin-off process, the controlling shareholder's power increases, while minority shareholders bear the risk of declining stock value.
The spin-off agenda was approved at the shareholders' meeting, but it escalated into a legal dispute. The Daejeon District Court Cheonan Branch partially accepted a request for an injunction to suspend the effectiveness of the shareholders' meeting the previous day. As a result, the spin-off procedure has been halted until the court's ruling on the merits is issued.
HANA Micron explained that if the legal dispute continues, achieving stable growth will be difficult, and both shareholders and the company could incur losses, leading to the withdrawal of the spin-off plan.
HANA Micron stated that this decision aims to eliminate management uncertainties and to further enhance advanced packaging technology in line with the growth of the artificial intelligence (AI) semiconductor market.
A representative from HANA Micron said, "The withdrawal of the spin-off prioritizes the interests of shareholders and the company," adding, "We will continue to uphold trust with shareholders as our top value and realize sustainable growth based on technology competitiveness and a global business expansion strategy."