Korean PE firm STIC to buy stake in copper foil maker Iljin

South Korean private equity firm STIC Investments is poised to become the second-largest shareholder of Iljin Materials Co., a Kosdaq-listed battery material maker.

STIC is in talks with Lotte Chemical Corp., a petrochemical unit within Korea’s No.5 conglomerate Lotte Group, to exchange shares of their portfolio companies, according to industry sources on Feb. 15.

The PE firm holds an estimated 35% stake in IMG Technology Co., which operates the overseas plants of Iljin, the world’s fourth-largest copper foil maker.

Lotte Chemical’s US subsidiary, Lotte Battery Materials, owns a 53.3% stake in Iljin.

Through the equity exchange, STIC is slated to own around 20% stake in Iljin and become the second-largest shareholder while Lotte Chemical will fully acquire IMG.

STIC looks to exit the Kosdaq-listed battery material firm via block deals in the future. Lotte Chemical, which owns Iljin shares via its US subsidiary Lotte Battery Materials, is slated to control Iljin's global businesses by acquiring IMG, which runs the copper foil maker's manufacturing overseas.

Lotte Chemical is also set to directly own Iljin. The petrochemical firm announced on Feb. 9 that it has signed an agreement with Lotte Battery Materials to take over its 53.3% stake in Iljin by the end of March.   

The total deal amounts to 2.3 trillion won, comprised of the purchase of Iljin shares and the rights to buy new stakes in IMG, Lotte Chemical stated.

Write to Chae-Yeon Kim at why29@hankyung.com


Jihyun Kim edited this article.