IMM Private Equity (IMM PE) has been selected as the preferred bidder to acquire Kolon Industries' semiconductor and display materials division.
According to the investment banking (IB) industry on the 30th, Samjong KPMG, the sell-side adviser for Kolon Industries' semiconductor and display materials division, notified IMM PE of this the previous day. The assets up for sale are the printed circuit board (PCB) materials unit and the display coating liquid materials unit. The combined revenue of the two divisions is known to be in the 200 billion won range.
The PCB materials business up for sale handles specialty epoxy resins for copper-clad laminate (CCL). The display coating liquid business produces overcoat (transparent protective film) products for planarization and pixel protection of organic light-emitting diode (OLED) panels. The carve-out deal is said to have been pursued by Kolon Industries as part of a business restructuring.
Kolon Industries and IMM PE are reportedly set to sign a memorandum of understanding (MOU) as early as this week.
IMM PE is expanding its manufacturing-related portfolio this year. In May, it signed a share purchase agreement (SPA) to acquire about 65% equity held by the founder's side of Ihwa Diamond Industrial, the No. 1 diamond tool company in Korea, for about 400 billion won. Ihwa Diamond produces diamond tools used in semiconductor and display processes.