BGF Ecobio Incorporated as a Subsidiary of Copra to "Strengthen Competitiveness in the Materials Sector"

BGF Ecobio Contributes Shares in Kind to Copra, Acquires New Shares
BGF Ecobio 60,000 Shares, Approximately KRW 28 Billion... "Considering Future Merger"
"Aiming to Enhance Management Efficiency in Materials Sector and Maximize Synergy Between Businesses"

[Asia Economy Reporter Yuri Kim] BGF, the holding company of BGF Group, is restructuring its governance by incorporating BGF Ecobio as a subsidiary of KOPLA to strengthen competitiveness in the materials sector.

On the 4th, BGF held a board meeting and resolved to contribute BGF Ecobio shares in kind to KOPLA and acquire new shares issued through a paid-in capital increase. The shares contributed in kind consist of 60,000 common shares of BGF Ecobio, valued at approximately 28 billion KRW. Through this, KOPLA will acquire 100% ownership of BGF Ecobio.

This governance restructuring was carried out to improve management efficiency and maximize synergy between businesses in the materials sector, a new growth engine for BGF Group. BGF also announced through a disclosure that it is considering a merger between KOPLA and BGF Ecobio in the future.

KOPLA focuses on engineering plastic compounding, utilizing materials such as PA6, PA66, and PP, and holds a diverse portfolio across industries including automotive, electrical and electronics, and construction. BGF Ecobio covers bio-plastics such as PLA and PBAT as well as recycling materials, concentrating on the consumer goods market. BGF expects that by leveraging the strengths of both companies in industrial and consumer goods sectors, they can establish a foundation for new growth.

Going forward, by integrating and utilizing R&D organizations, facilities, and equipment between the two companies, management efficiency will be further enhanced, and synergies in production materials will be created to discover new business opportunities, focusing internal capabilities accordingly.

A BGF Group official stated, "Through the governance restructuring of these two companies with high growth potential, we expect to significantly enhance the business competitiveness of the materials sector. With the ability to share pipelines in both industrial and consumer goods fields, this can become a new growth momentum for the materials business within the group."

Meanwhile, in November last year, BGF invested a total of 250 billion KRW to acquire KOPLA, a KOSDAQ-listed company, through a third-party allotment paid-in capital increase.

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