Korean GP invests $16m in electronics industry supplier

Moat has agreed to acquire about 10 million shares in the company from Seoul-based J&J Investment, which took an 18.7% stake in 2017 by investing KRW9.5 billion across two transactions. The stock reached as high as KRW1,870 in late February and fell as low as KRW1,100 in late March. It was trading at KRW1,655 as of early afternoon April 6, giving the company a market capitalization of KRW118.5 billion. 

Exax manufactures a range of chemicals and materials such as resins, photosensitive compounds, and electrically conductive adhesives that are used in the production of display screens. The company is also active across areas as diverse as bio-sensors and near-field communication for internet-of-things devices. It will use the fresh capital to hire additional staff and pursue expansions into new business areas, according to a filing. 

Revenue has declined steadily in recent years, having fallen 23% during 2018 to KRW33.4 billion. This followed a 5.6% decline during 2017 and a 9.9% fall during 2016. Exax narrowed its losses, however, from KRW9.3 billion to KRW2.2 billion during 2018. Revenue for the first nine months of 2019 came to KRW27.1 billion, while the net loss was KRW2.1 billion. 

Private equity interest in North Asia’s upstream display screen technology market has persisted despite challenges around securing intellectual property and competition from strategics. Recent activity in this space includes Japan Display, which is backed by a government VC, receiving a $2 billion bailout package that included a $714 million investment from China’s Harvest Fund Management. 

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• Topics
• North Asia
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• manufacturing