STIC Investments to invest $627 mln in Iljin Materials Proceeds to be used to build Hungarian plant

Translated by Kim So-in 공개 2021-04-23 14:33:58

이 기사는 2021년 04월 23일 07:24 더벨 유료페이지에 표출된 기사입니다.

Iljin Materials, which produces copper foils for rechargeable batteries and printed circuit boards, will receive as much as 700 billion won ($627 million) from Seoul-based private equity (PE) firm STIC Investments.

STIC will inject the money into Iljin Materials' Hungary-based subsidiary IMH Technology to fund the construction of its copper foil production facility there, industry sources said on Wednesday. STIC has recently started its marketing campaign towards institutional investors.

Iljin Materials established its Hungarian subsidiary through its Malaysia-based subsidiary IMM Technology in 2020 to enter the European market. Iljin Materials planned to improve its accessibility through its Hungarian plant given that Europe is the production base of global battery and auto makers. IMM Technology injected 15 billion won at the end of last year to complete the construction within this year.

There are currently only five or six companies in the world that manufacture high-quality copper foil, including Iljin Materials. Iljin Materials had the second largest market share of 9.7% globally in 2019, behind Taiwan-based CCP with 12.9%. SK Group’s affiliate SKC is the third-largest with 7.4%.

Back in 2019, STIC had invested 600 billion won in Iiljin Materials by acquiring convertible bonds issued by IMM Technology. The proceeds were used to expand IMM Technology's plants in Malaysia.

STIC made the previous investment through its Special Situation Fund II, which is also expected to be used for the latest investment along with its co-investment fund.

Once the deal is completed, STIC’s investment in Iljin Material will amount to more than 1 trillion won.

IMM Technology is currently preparing its initial public offering in Korea, mandating Korea Investment & Securities and Shinhan Investment to handle the process. IMM Technology recorded revenue of 150 billion won in 2020, and it is estimated to increase to more than 400 billion won this year. Market insiders expect the company’s valuation to be in the 1 trillion won range. (Reporting by Si-eun Park and Byung-yoon Kim)
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