KoAsia invests in DiosTech acquisition consortium to strengthen camera module business competitiveness

[Asia Economy Reporter Hyunseok Yoo] CoAsia announced on the 15th that it will invest 10 billion KRW as a strategic investor (SI) in the ‘CoAsia Cape No.1 New Technology Business Investment Association (hereinafter CoAsia Cape Association, total fund size 35.1 billion KRW)’ which is acquiring management rights of Dios Tech.

The CoAsia Cape Association paid a contract deposit of about 9.7 billion KRW on the same day and plans to pay the remaining balance of about 700 million KRW on the 13th of next month, making the initial acquisition scale about 10.4 billion KRW. On the 29th, the management rights will be acquired by appointing directors and auditors through an extraordinary shareholders' meeting of Dios Tech.

The company stated, “The active participation of financial institutional investors (FI), including Cape Investment & Securities, in this acquisition means that CoAsia’s management capabilities in the IT manufacturing sector have been highly evaluated,” and added, “After acquiring management rights, we expect early business normalization through diversification of the product portfolio, such as expanding high-pixel smartphone camera models.”

They continued, “Dios Tech has excellent manufacturing capabilities based on the largest domestic mobile lens production capacity and cost competitiveness,” and said, “Through synergy effects such as sharing manufacturing competitiveness and business networks between the two companies, management efficiency and profitability expansion will also be possible.”

Dios Tech is a company specializing in the production of lenses for smartphones, including Samsung Electronics’ Galaxy A series. It has the largest domestic production capacity, reaching about 300 million units annually. Last year, it also received patent technology transfers from Samsung Electronics for smartphone camera lens design.

CoAsia has CoAsia CMBina, a subsidiary engaged in the camera module business in Vietnam. CoAsia CMBina also mainly produces modules for Samsung Electronics’ budget smartphones.

A CoAsia official said, “We will provide multifaceted support to resume the trading of Dios Tech, which was suspended due to issues with the previous management,” and added, “We will reorganize business units with low business feasibility and focus on strengthening the core competencies of the optical lens business.” They further stated, “In the future, we will expand supply channels for smartphones as well as medical devices, automotive electronics, and AI (artificial intelligence) applications to increase corporate value.”

This content was produced with the assistance of AI translation services.