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Magnachip To Spin-off Display And Power Businesses Into Separate Entities
(RTTNews) - Magnachip Semiconductor Corp. (MX) announced Tuesday that the Company is separating its display and power businesses into separate entities, following approval by its board of directors and strategic review committee.
The Company plans to effectuate the internal separation by establishing a new subsidiary "NewCo" under Magnachip Semiconductor, Ltd., the Company's operating subsidiary.
As part of the transaction, all assets and liabilities of the display business will be contributed to NewCo in exchange for equity. Once internal separation is completed, Magnachip and NewCo will both be separate operating companies, with NewCo being a wholly owned subsidiary of Magnachip.
The Company's Gumi fabrication facility will remain with Magnachip as an integral part of its power business.
Post-separation, the board of directors of Magnachip will continue to oversee both operating entities, ensuring cohesive governance, while YJ Kim and the executive management team will manage their business and operations.
The internal separation is not expected to have any material impact on the Company's financial reporting or consolidated financial statements. The Internal Split-Off is expected to be completed in the fourth quarter of 2023.
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