KOSDAQ-listed DONGJIN SEMICHEM said on the 14th that the agenda item to approve the "partitioning plan" was passed as originally proposed at an extraordinary shareholders meeting.
Through the approval of this agenda item, DONGJIN SEMICHEM decided to establish a new company, "Dongjin Inochem" (tentative name), by a simple physical partitioning of its foaming agent business. The partitioning date is Jan. 1 next year, and the partitioned entity will become a 100% subsidiary of DONGJIN SEMICHEM.
DONGJIN SEMICHEM said the physical partitioning will separate the electronic materials and foaming agent businesses, increasing each institutional sector's expertise and maximizing management efficiency. The secured funds and capabilities, along with proceeds from the planned sale of the China display unit, will be focused on domestic electronic materials. It also emphasized that there is no plan to list the new entity to protect shareholders.
The company also said it will continue to increase its dividend payout ratio to enhance shareholder value, and will consider share buybacks and cancellations in light of its financial position.
It is also considering partially canceling treasury shares to be acquired through the exercise of appraisal rights by shareholders opposing the physical partitioning. The expected purchase price for appraisal rights in DONGJIN SEMICHEM is 37,440 won, and the company plans to disclose a specific disposal plan after confirming the aggregates on the 4th of next month.
A DONGJIN SEMICHEM official said, "This physical partitioning is a preemptive decision to respond quickly to rapid changes in downstream industries and to strengthen the expertise of the electronic materials business," adding, "By concentrating capabilities on core businesses, we will enter a full-fledged growth trajectory next year, and we will continue to review various shareholder return policies, including treasury share cancellations, to do our utmost to enhance shareholder value."