PI cutting-edge materials sold for 1 billion US dollars, more than 10 snapped up

According to the Korean media Korea Economic Report, according to the investment banking (IB) industry on March 22, Glenwood Private Equity (PE) and sales director JP Morgan, which are promoting the sale of PI cutting-edge materials, will conduct preliminary bidding on April 6. Up to now, more than 10 willing acquirers have received the investment prospectus (IM) and checked the enterprise content.

It is understood that the seller is Glenwood Private Equity, the largest shareholder of PI Advanced Materials, which is seeking to sell its 54% stake in PI Advanced Materials two years after acquiring PI Advanced Materials for about 607 billion won (about 490 million US dollars). , the sale is expected to earn more than 1 trillion won (about 834 million US dollars). It is reported that Glenwood has hired JPMorgan Chase as transaction advisor.

In addition to the large domestic companies - Lotte Group and Hanwha Group, more than a dozen companies including overseas companies and PE fund operating companies will also participate in the bidding.

The sales of PI Advanced Materials last year were 301.9 billion won (about 1.57 billion yuan), and the operating profit was 75.9 billion won (about 390 million yuan), an increase of 15.3% and 26.4% year-on-year, respectively, achieving the largest performance since its establishment. This is mainly due to the improvement in the prosperity of downstream industries such as smartphones, electric vehicle batteries, and OLED (organic light-emitting diode) panels.

According to this year's performance expectations announced by PI Advanced Materials, sales in 2022 will increase by 20% year-on-year to 360 billion won (about 1.87 billion yuan), and earnings before interest, tax, depreciation and amortization (EBITDA) will be more than 120 billion won (about 6.2 billion won). 100 million yuan), with an operating profit of more than 94 billion won (about 490 million yuan). The company plans to increase sales by 2 or 3 times compared to last year, reaching more than 700 billion won (about 3.64 billion yuan) by 2026. The product structure will change from the existing mobile phone-based business to a diversified business direction such as mobile, display, 5G high-speed transmission, and semiconductor materials.

PI cutting-edge material Korea factory

The predecessor of PI cutting-edge materials was the integration of the polyimide film business by SKC and Kolon, and the joint venture was established in June 2008 with a ratio of 5:5. First listed on KOSDAQ in December 2014. The company officially changed its name to PI Advanced Materials Co., Ltd ("PI Advanced Materials" in Chinese) on May 27, 2020. In 2020, Glenwood Private Equity acquired 54% of the shares for about 607 billion won and became its largest shareholder.

 Source: Korea Economic News