- Spin-off into OCI Holdings, a surviving holding company, and OCI, a new corporation in the chemical business, to be completed in March 2023
- OCI Holdings pursues a growth strategy commensurate with the business features of subsidiaries through transition to a holding company
- The new OCI is expected to increase management efficiency through independent management and accelerate its penetration into new growth business sectors
According to the company’s website press release on November 28, 2022, OCI (Chairman & Representative Director Woo-Sug Baik, Vice Chairman & Representative Director Woo Hyun Lee, President (CEO) and Representative Director Teak Joung Kim) announced on November 23 that it held a board of directors meeting and approved the spin-off of the company’s main business in the basic chemical and carbon chemical sectors and the creation of a new corporation. The spin-off will be finally decided at a shareholders’ meeting in March 2023.
OCI will be spun off into OCI Holdings,a surviving holding company, and OCI, a new corporation in the chemical business. OCI’s shareholders will receive new shares of the new corporation, commensurate with their stakes in OCI Holdings and OCI. The spin-off ratio of OCI Holdings to OCI is 69% and 31%.
OCI Holdings, the surviving corporation, will make the new company its subsidiary with a rights issue based on investment in kind and takeover, and become a holding company.
OCI Holdings will concentrate on developing and implementing a growth strategy and the investment plans of subsidiaries, and will carry out various policies to enhance shareholder value. The holding company will further expand ESG management for subsidiaries.
OCI, the new company created after the spin-off, will retain OCI as its company name, and aims to maximize managerial efficiency with the independent operation of the chemical business and explore and expand new growth opportunities in the chemical sector.
In the basic chemical sector, OCI will expand high value-added products such as polysilicon for semiconductors and high-purity hydrogen peroxide, and diversify its product lineup by adding a new product in silanefor semiconductors and hexachlorodisilane (HCDS).The new company plans to penetrate new markets at home and abroad including M&As in the U.S. market.
In the carbon chemical sector, the new company plans to build a portfolio of high-value added products, and implement new businesses such as highly conductive carbon black used for high voltage cables and conductive additivesfor rechargeable batteries.
An OCI official said, “With this spin-off, we will reassess the intrinsic value of our chemical business that has been undervalued behind solar PV polysilicon products and maximize shareholders’ value. Through transition to a holding company, OCI will push for a growth strategy commensurate with the business features of subsidiaries, and seek the stable growth of the group.”
