BGF to Acquire 56.9% Stake in KNW, Directly Manage Semiconductor Materials Business

Simplifies the ownership structure from four tiers to three
Improves management efficiency under the holding company’s responsible management system

BGF will directly manage its semiconductor materials business by acquiring the entire stake in KNW held by its subsidiary, BGF Eco Materials.

On October 7, BGF disclosed that it would purchase 9,113,891 common shares in KNW, representing a 56.9% stake. As a result, the BGF Group will be reorganized into three business divisions: BGF Retail (distribution), BGF Eco Materials (engineering plastic materials), and KNW (semiconductor materials).

KNW, previously a subsidiary of BGF’s subsidiary, will become a subsidiary of BGF, while BGF Eco Specialty, previously a subsidiary of KNW, will become a subsidiary of KNW’s subsidiary. This will simplify the group’s ownership structure from four tiers to three.

Through this restructuring, BGF plans to accelerate investment and decision-making in its semiconductor materials business. In September, KNW subsidiary BGF Eco Specialty completed construction of an anhydrous hydrogen fluoride plant with annual capacity of approximately 50,000 tons in the Onsan National Industrial Complex in Ulsan. The company will need to make substantial investments to stabilize production and expand capacity further.

BGF Eco Materials will use the proceeds from the sale of its stake in KNW to strengthen the competitiveness of its engineering plastics business, repay borrowings, and enhance shareholder value. It plans to expand its capacity to supply high-quality recycled materials, repay its floating-rate borrowings early, and consider shareholder-return measures, including a tender offer, using some of the funds.

It also plans to cancel all 842,699 treasury shares it holds, equivalent to approximately 1.3% of its total issued shares, next month.

A BGF representative said, "This restructuring of our ownership structure will lay the foundation for strategically fostering future growth engines and establish a responsible management system. By maximizing the capabilities of all our business divisions, we will strengthen the competitiveness of the group as a whole."

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