KNW Co., Ltd. agreed to acquire GI Materials Co., Ltd. for for KRW 16.3 billion.
January 10, 2021
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KNW Co., Ltd. (KOSDAQ:A105330) agreed to acquire GI Materials Co., Ltd for KRW 16.3 billion on January 11, 2021. Under the terms the exchange ratio is 1 : 8.5183430. After this merger, KNW Co., Ltd. will remain as a surviving corporation, and GI Materials Co., Ltd. will disappear. The transaction is subject to shareholders approval of KNW Co., Ltd. The merger is subject to the following conditions-i) both the parties must have obtained approval under Article 4 for the merger ii) In connection with the merger, all licenses including, but not limited to, a report on merger under the Monopoly Regulation and Fair Trade Act that must be obtained by the merger date in relation to the merger must have been acquired iii) the notification and registration procedures required by the merger date must have been completed iv) all statements and guarantees by each party under this agreement is true and true in the respect of the date of conclusion of this agreement and the date of merger v) all commitments and other obligations as required by each party is performed under this Agreement vi) No material negative changes to the property and business condition of each party from the date of conclusion of this contract until the merger date Vii). There shall be no lawsuit, seizure, provisional injunction, administrative action, etc. that interfere with or delay the current or potential merger. The transaction is expected to close on April 1, 2021. Taeyul Accounting Corporation acted as accountant in the transaction.
KNW Co., Ltd is a Korea-based company principally engaged in the manufacture of electronic component materials. The Company mainly operates in two divisions: electronic component material and automobile part. Its electronic component material division involves in the production of design oriented films (DOFs) used for printed electronics, blankets used as display color filter materials, protect films, photovoltaic (PV) back sheets used for solar energy modules, as well as liquid crystal diode (LCD) back light unit (BLU) coatings, among others. Its automobile part division involves in the provision of automobile interior materials. The Company distributes its products within domestic market and to overseas markets including Japan, Taiwan and others.