Polysilicon maker OCI to spin off its major chemical units
Kyung-Min Kang
Nov 23, 2022 (Gmt+09:00)
Ma Steel OCI, an OCI pitch factory in China (Courtesy of OCI) OCI Co., South Korea’s lone polysilicon producer, is set to spin off its chemical units and transform itself into a holding company.
On Wednesday, the firm’s board of directors decided to spin off two major arms, the basic chemical and carbon chemical divisions, and set up a new corporation for the units. The scheme needs to be confirmed at the general meeting of shareholders in March 2023.
OCI will be separated into a holding firm and a new chemical corporation, which will absorb the two units. The existing shareholders will be allocated stocks in a 69:31 ratio between the holding firm and the new entity.
The basic chemical unit, producing and selling polysilicon, accounts for 40% of OCI’s overall sales. The carbon chemical unit manufactures and sells carbon black, benzene, pitch and other chemicals.
Through the spin-off, OCI aims to enhance its chemical business efficiency as well as bolster CEO and Vice Chairman Lee Woo-hyun’s power in the group, market sources said.
Lee, the eldest son of the late chairman Lee Soo-young, owns just a 5% stake in the company. The late chairman’s younger brothers, chemical trading firm Unid Global Corp. Chairman Lee Wha-young and energy supplier SGC Energy Co. Chairman Lee Bok-young, each hold 5.4%.
The current CEO is highly likely to execute the new chemical entity's equity contribution to the new holding firm, thus increasing his shareholding rate in the holding firm, sources said.