Taihan Fiberoptics is strong at the beginning of trading on the 26th, following the news that it has received approval from the U.S. government for the acquisition of a U.S. fiber optic cable corporation.
As of 9:20 a.m. on that day, Taihan Fiberoptics is trading at 1,253 won, up 76 won (6.46%) from the previous trading day. Shortly after the opening, the price soared to 1,392 won, marking a new high for the year.
Taihan Fiberoptics announced that it has obtained approval from the U.S. government's Committee on Foreign Investment in the United States (CFIUS) for the acquisition of the U.S. fiber optic cable specialist 'INCAB America LLC' before the regular trading session.
CFIUS is a federal government entity that reviews the impact on national security of foreign corporations acquiring equity in U.S. companies, and transactions involving strategic technologies, infrastructure, and data must receive approval from the agency.
Last November, TF Networks, a 100% subsidiary of Taihan Fiberoptics, signed a letter of intent with INCAB America, based in Texas. In January of this year, it also signed a stock purchase agreement (SPA) to secure 88.5% equity. Taihan Fiberoptics noted that with this CFIUS approval, the acquisition process is entering the final stages, and it is expected to secure manufacturing and supply bases in the U.S. in the near future.
INCAB America is an integrated cable manufacturer that produces various products, including optical fiber composite overhead ground wire (OPGW), all-dielectric self-supporting cable (ADSS), and fire-rated cables, equipped to produce more than 640 kilometers of cable monthly.
A representative from Taihan Fiberoptics said, "As we have passed the necessary CFIUS review, we will swiftly finalize the acquisition of INCAB America and focus on targeting the U.S. market, aiming for a turnaround in performance this year."