SKC to sell core business of subsidiary SK enpulse

[Courtesy of SKC]

SKC Corp., a materials unit of South Korea’s SK Group will be selling the core business of its subsidiary SK enpulse Co., a manufacturer of semiconductor materials and components, in an effort to shift its focus to batteries and semiconductor materials.

According to the investment banking industry on Monday, SKC recently signed a memorandum of understanding (MOU) with private equity fund Hahn & Co. to sell the fine ceramics division of SK enpulse, the company’s flagship business. The sale value is known to be approximately 400 billion won ($308.7 million).

The fine ceramics division accounts for 70 percent of the company’s total sales, according to sources.

SK enpulse, through the sale, plans to focus on semiconductor pre-process materials, such as chemical mechanical planarization (CMP) pads and blank masks. Earlier this year, the company changed its name to SK enpulse from SKC solmics and announced its commitment to build a corporate value of 1.5 trillion won by 2025 with a focus on the high-value chip materials business.

SKC also decided to sell its polyol manufacturing subsidiary SK pucore Co. It is in talks with local PEF Glenwood Private Equity Co., and the sale price is between 500 billion won and 600 billion won.

SKC is expected to raise nearly 1 trillion won from the sales. The proceeds will be used to fund mergers and acquisitions and expansion of copper foil facilities. They will also be used to pay for the company’s acquisition of chip test solution provider ISC Co.