Major domestic corporations are moving one after another to sell institutional sectors such as semiconductor materials. It is seen as a strategic judgment that selling during a semiconductor boom can lead to higher corporate valuations.
According to the business community on the 16th, Kolon Industries plans to sell part of its semiconductor and display materials business. Kolon Industries selected private equity firm IMM Private Equity (IMM PE) as the preferred bidder and signed a memorandum of understanding (MOU) on the 13th.
The businesses Kolon Industries is seeking to sell are the dry film photoresist (DFR), display coating overcoat (OC), and organic light-emitting diode (OLED) encapsulation materials under the Specialty division. DFR is a film-type photosensitive material used to draw fine electric circuits on semiconductor package substrates or printed circuit boards (PCB). Overcoat and OLED encapsulation materials are display materials businesses.
Kolon Industries said it decided to sell part of its semiconductor and display materials business to invest in new businesses. A Kolon Industries official said, "This business transfer decision follows our long-term development plan to focus on core competencies," adding, "We plan to use the transfer transaction proceeds to strengthen the company's competitiveness by improving our financial structure and investing in new businesses."
SK Group is pushing to sell equity in SK Siltron, the world's No. 3 semiconductor wafer manufacturer. The equity for sale is 70.6%, excluding the 29.4% stake held by SK Group Chairman Chey Tae-won. SK Group reportedly selected Doosan Co. as the preferred bidder in Dec. last year and is in last-minute price negotiations.
SK Group decided to sell SK Siltron to improve its financial structure and secure liquidity through business restructuring. At the time, SK Siltron's total corporate value was assessed at 5 trillion won.
However, some observers say SK Group is reconsidering the decision to sell SK Siltron because the boom in artificial intelligence (AI) semiconductors has heightened the importance of supply chains for semiconductor materials, components, and equipment. As SK hynix expands its influence in the AI memory market, opinions have emerged that it is better to keep SK Siltron, a key materials manufacturer, within the group.
But a business community official said, "With SK Group in the midst of a three-year group rebalancing, it may be better to get full value while the price tag is high."
Earlier, copper foil maker Solus Advanced Materials said in April that it would sell its semiconductor copper foil (circuit foil) institutional sector to its largest shareholder, Skylake Long Term Strategic Investment. Solus Advanced Materials decided to sell 100% equity in European copper foil maker CFL, held by its subsidiary Volta Energy Solution, to an affiliate of the largest shareholder for 300 billion won.
Solus Advanced Materials explained that it sold the semiconductor copper foil institutional sector to focus on copper foil for secondary batteries instead of circuit foil. It plans to invest the proceeds in building a North American base, including a Canadian battery foil plant slated for completion at the end of this year.
A business community official said, "When the semiconductor market is at its peak, materials corporations also post strong results, so selling now can fetch a higher price," adding, "Because the semiconductor industry is cyclical, it is better to sell during a boom."