Dreamtech Sells Stake in Subsidiary Dreamtech Automotive... "Strengthening Investment in New Businesses"

Sale of Entire Shares Including Management Rights (10 Million Shares) to SMAC
Sale Price 24.9 Billion KRW, Investment in Smart Medical Devices and 5G Business

Dreamtech Automotive Small but Strong Factory Exterior. Photo by Dreamtech

[Asia Economy Reporter Kim Heeyoon] Dreamtech, a comprehensive electronic components manufacturer, announced on the 14th that it will sell its subsidiary 'Dreamtech Automotive' and strengthen its competitiveness in new businesses such as smart medical devices and core businesses.

Dreamtech stated that it will sell all shares (10 million shares), including management rights, of Dreamtech Automotive to SMAC Co., Ltd. Dreamtech holds 100% of Dreamtech Automotive's shares, and the sale price is 24.9 billion KRW.

According to Dreamtech, Dreamtech Automotive was established in July last year through a physical division of Dreamtech's automotive electronics business division. Since then, it has established a responsible management system and led efforts to improve cost structure through manufacturing process and organizational efficiency. It produces vehicle LED lamp modules applied to automotive headlamps, daytime running lights, and rear lamps at its Cheonan factory and Jiangsu factory in China, supplying domestic and global automotive parts companies including Hyundai Mobis. Last year, Dreamtech Automotive's sales amounted to 40.5 billion KRW.

This sale of Dreamtech Automotive shares is part of Dreamtech's business efficiency efforts initiated last year. Dreamtech plans to use the proceeds from the sale to invest in new businesses including smart medical devices and to strengthen competitiveness in core businesses.

A Dreamtech official said, "The automotive electronics business differs in nature from Dreamtech's existing smartphone module business and new businesses, so we decided to sell the shares we held to improve business efficiency. We believe that investing the funds secured from this share sale into new businesses rather than retaining them as internal reserves will help enhance corporate and shareholder value. The funds will be used for mass production facility construction and R&D expenses for future growth businesses such as the smart medical device business and 5G business."

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