OCI to Pursue Spin-Off into Holding Company and Two Chemical Firms... Independence for Core Businesses

Parent Holding Company 'OCI Holdings'
Separated into New Chemical Company 'OCI'
Final Confirmation in March Next Year

[Asia Economy Reporter Choi Seoyoon] OCI held a board meeting and resolved to establish a new corporation by spinning off its core chemical business sectors, including Basic Chemicals and Carbon Chemicals, as announced on the 23rd. The OCI split is expected to be finalized after a shareholders' meeting scheduled for the end of March next year.

Through this spin-off, OCI will be divided into the surviving holding company 'OCI Holdings' and the newly established chemical company 'OCI.' Existing shareholders will receive shares of the newly established companies proportionally according to their holdings in OCI Holdings and OCI. The split ratio is 69% for OCI Holdings and 31% for OCI.

The surviving entity, OCI Holdings, plans to incorporate the new company as a subsidiary through a paid-in capital increase via a public tender offer and in-kind contributions, transitioning into a holding company.

As a holding company, OCI Holdings will focus on establishing and executing growth strategies and investment plans for its subsidiaries, while promoting various policies to enhance shareholder value. ESG management will also be further expanded centered around the holding company.

The newly established business company, OCI, will retain the existing 'OCI' name and maximize management efficiency through independent operation of the chemical division, while pursuing the discovery and expansion of new growth engines in the chemical sector.

In the Basic Chemicals sector, OCI plans to expand high value-added products such as polysilicon for semiconductors and high-purity hydrogen peroxide. In addition to the previously introduced semiconductor precursor HCDS (Hexachlorodisilane), new silane-based products will be added to strengthen the product lineup. OCI will also actively pursue domestic and international market expansion, including mergers and acquisitions to enter the U.S. market.

In the Carbon Chemicals sector, OCI aims to build a portfolio focused on high value-added products and is expected to promote new businesses such as highly conductive carbon black used in high-voltage cables and secondary battery conductive materials.

An OCI official stated, “Through this spin-off, we plan to realize the maximization of shareholder value along with a revaluation of the intrinsic value of the core chemical business, which has been undervalued due to the overshadowing by solar polysilicon products. By transitioning to a holding company system, we will actively pursue individual growth strategies tailored to the business characteristics of each affiliate and strive for stable growth of the group.”

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