KOSDAQ-listed U.I.D will acquire TS Tech, a corporations specializing in automotive composite materials. It plans to expand its business from its existing display operations to eco-friendly electronic device component materials to diversify its portfolio.
U.I.D said on the 1st that it held a board meeting at its headquarters conference room in Cheongju, North Chungcheong, and decided to take part in TS Tech's third-party paid-in capital increase.
U.I.D will invest about 2 billion won in this TS Tech paid-in capital increase to secure 51% equity and take management control. The investment is planned to be completed within this month.
The investment appears to be a decision for portfolio diversification. TS Tech is building an OEM (original equipment manufacturer) supply chain targeting major domestic oil and chemical corporations in the polypropylene (PP) composite materials field for automotive interior materials. Annual sales exceed 10 billion won, and it expects 14.1 billion won this year and 17.7 billion won next year.
A U.I.D official said, "Once this acquisition is completed, TS Tech's results will be immediately reflected in the consolidation financial statements, strengthening both top-line growth and fundamentals," and added, "We expect to lay the groundwork for earnings growth."
With this acquisition, U.I.D plans to enter the electric vehicle and electronic components markets. In the recent electric vehicle market, PP composite materials for lightweighting electronic components are drawing attention. The aim is to reduce weight to extend driving range.
A U.I.D official said, "We will combine U.I.D's accumulated thin-film coating know-how with TS Tech's high-performance PP composite material technology to aggressively target the next-generation eco-friendly auto parts market," and noted, "We will raise corporate value by one level and reward shareholders by enhancing shareholder value."