Orbitech Acquires Fine Technix to Expand Business Domains

원본보기 아이콘

Orbitech, a total solution provider for nuclear power and radioactive materials, announced on the 10th that it will acquire approximately 5.07 million shares of Fine Technix, a KOSDAQ-listed company.

The acquisition amount is 25 billion won, which corresponds to 22.9% of Orbitech's total assets. After the acquisition, the number of shares held will be approximately 5.07 million, giving Orbitech a 29.8% stake in Fine Technix. Orbitech plans to pay part of the acquisition amount using its cash reserves and convertible bonds. In addition, Orbitech intends to secure an additional stake by acquiring all 3.6 million new shares to be issued by Fine Technix through a third-party allotment paid-in capital increase. The scheduled payment date is December 26, and if the acquisition of the new shares is completed, Orbitech's stake will rise to approximately 42.1%. Orbitech submitted an external evaluation report on the target company to the stock exchange as part of the acquisition of existing shares.

Fine Technix, the company being acquired by Orbitech, was established in 2009. Since 2015, it has established overseas sales subsidiaries in Mexico, India, and Indonesia, and in 2023, it participated in a local factory construction project in the United States. In 2024, the company enhanced its brand recognition by participating in the S-Oil Shaheen Project.

A representative from Orbitech stated, "Fine Technix's self-developed second-generation LED explosion-proof lighting fixtures have obtained the highest T6 certification for IECEx (International Explosion Protection Certification), ATEX (European Explosion Protection Certification), and KCs (Domestic Explosion Protection Certification), and are being supplied to numerous institutions and companies both domestically and internationally." The representative added, "We expect that Fine Technix's experience and human network will greatly assist in our plans to expand our business areas by seeking ways to create synergy with our existing business domains."

Explosion-proof lighting is a specialized type of lighting installed in safety-critical areas such as nuclear power plants, mine tunnels, LPG filling stations, and chemical plants. These products are designed to be safe, with no risk of explosion or fire.

Orbitech CEO Do Eunseong commented, "Although Orbitech possesses advanced technology and expertise related to nuclear power, the scope of work we can perform has been limited, so we have continuously explored ways to expand our business areas." He added, "Through this acquisition, we expect to seek both expansion and diversification of our business domains."

He also stated, "Although approximately 30 billion won in funding is required, we secured 11.2 billion won by selling convertible bonds on the 5th to enhance cash liquidity, and we also raised 1 billion won through a small third-party paid-in capital increase and issued convertible bonds to further secure liquidity." He continued, "In addition, by selling part of our available-for-sale securities and other assets, we have sufficiently secured cash-equivalent assets, so there should be no significant difficulty in operating the company."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.