IMM Credit & Solution (ICS) said on the 4th it will acquire 100 billion won in exchangeable bonds (EB) with HANA Micron as the investment target. The deal is scheduled to close on the 14th of next month.
This EB will be issued by Hana Materials, a back-end semiconductor testing and packaging company. It is structured to exchange a portion of the HANA Micron equity held by Hana Materials. The structure secures stability through a bond investment while allowing for additional gains tied to a rise in HANA Micron's corporate value.
This is ICS's third EB investment. Previously, ICS invested in EBs for Hyundai Heavy Industries and SNT Group.
HANA Micron is Korea's No. 1 integrated outsourced semiconductor assembly and test (OSAT) corporations and works with Samsung Electronics and SK hynix. It operates production bases mainly in Korea and Vietnam and is a key back-end corporations in the global semiconductor supply chain.
ICS assessed that as integrated device manufacturers (IDMs) expand outsourcing of back-end processes, rising demand for high value-added packaging and testing will lift HANA Micron's mid- to long-term results.
ICS also projected that amid structural industry growth centered on artificial intelligence (AI) semiconductors and the reshaping of the global semiconductor supply chain, HANA Micron's market competitiveness will stand out even more. ICS said it is betting on further share-price gains driven by HANA Micron's earnings improvement and a valuation re-rating.