OCI Holdings to Contribute Five Subsidiaries in Kind to OCI... Accelerating Transition to Holding Company

by Choi Seoyoon

Published 26 Oct.2023 17:50(KST)

Expected 44.78% OCI Stake After Capital Contribution
Completion of Holding Company Transition Within the Year

OCI Holdings announced on the 26th that at the regular board meeting held on the same day, it resolved to participate in a paid-in capital increase through a contribution in kind to OCI Co., Ltd. and to enter into a contribution in kind contract.

OCI Holdings secured a 33.25% stake in OCI Co., Ltd. as of the 22nd of last month, following the completion of a public tender offer and contribution in kind, thereby meeting the requirements for conversion into a holding company.

OCI Holdings plans to transfer the corporate stocks or equity related to OCI Co., Ltd.'s business divisions that it holds to OCI Co., Ltd. to maximize synergy in the chemical materials business and improve the operational efficiency of its subsidiaries.

The entities subject to contribution include five corporations: OCI Dream, a standard workplace for the disabled; P&OChemical, a joint venture with POSCO Future M; overseas affiliates OCI China, OCI Japan; and Philko Peroxide.

OCI Co., Ltd. stated, "Through this contribution in kind, the debt ratio will decrease from 104% to 89%, enhancing financial stability and investment capacity."

The stocks of the five corporations held by OCI Holdings will be contributed in kind to OCI Co., Ltd., which will issue and allocate new shares to OCI Holdings through a third-party allotment paid-in capital increase. The issue price of OCI Co., Ltd.'s new shares is 106,400 KRW, and the new shares will be issued after court approval is completed.

Through this contribution in kind, OCI Holdings is expected to secure 44.78% of the issued shares of OCI Co., Ltd. Subsequently, it will complete the holding company conversion within the year through procedures such as the holding company conversion report.

Lee Woo-hyun, Chairman of OCI Holdings, said, “OCI Holdings will continue to do its best to expand corporate value as a holding company through efficient management activities in each business division as well as continuous efforts to discover new growth engines.”