Engis Technology sells part of 'Melcon' shares for 18.2 billion KRW to "improve financial structure"

[Asia Economy Reporter Yoo Hyun-seok] Ngis Technology, a company specializing in autonomous driving solutions, announced on the 28th that it sold part of its subsidiary Melcon's shares to Y Alliance for 18.25 billion KRW. Ngis Technology's shareholding in Melcon will decrease from the existing 50.89% to 25.89%, but it will maintain its status as the largest shareholder.

Ngis Technology explained that the share sale focused on selecting investors who can create optimal synergy from a strategic partnership perspective, aiming for comprehensive financial structure improvement. The company also plans to initiate the initial public offering (IPO) process for its subsidiary Melcon starting next year.

Y Alliance, which acquired Melcon shares, is an investment firm led by former senior executives from Samsung Electronics Semiconductor and SK Hynix. As Ngis Technology has formed a new strategic financial investment partnership with Y Alliance, it plans to explore various new growth engines, including mergers and acquisitions and new investments, in addition to Melcon's core business of ultra-precision temperature and humidity control devices (THC).

A company official stated, "Y Alliance is a company with capabilities that can create synergy for the future growth of our subsidiary Melcon based on its experience and influence in the semiconductor industry. With Y Alliance joining as a strategic financial investor through this share sale, we plan to begin the full-scale listing process for Melcon next year, including selecting an underwriter."

Ngis Technology recently appointed Lee Jung-jun as the new CEO and is strengthening its cooperation with LG Electronics' automotive components division while reinforcing its global market entry strategy based on core autonomous driving technologies. Melcon, the subsidiary, also plans to make 2021 a year of growth, having appointed Kim Sung-il, a former Samsung Electronics executive, as CEO this year and secured Y Alliance as a new strategic investor.

The company also reported that it is continuing follow-up measures after being designated as a management item due to review opinions on the last semi-annual report. A company representative said, "Discussions are ongoing that many of the scope limitation reasons in the interim audit by the accounting firm have been resolved recently, and we will focus on advancing the external auditor’s audit schedule as much as possible to quickly exit the management item status."

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