[Edaily Reporter Kwon Oh Seok ] Enchem Co., Ltd.(348370)’s stock price is surging in early trading. Buying interest appears to be surging following news that the company is pursuing a merger centered on its U.S. subsidiary, Enchem Co., Ltd., to secure growth capital by tapping into the U.S. capital market.

According to MP Doctor on the 16th, Enchem Co., Ltd.’s stock was trading at 25,250 won as of 9:04 a.m., up 17.99% from the previous trading day.
The company had previously issued a press release the day before, stating, “This is a strategy to have the growth value of our U.S. business evaluated by the local capital market, secure the funds necessary to expand our production and supply base in the U.S., and diversify the group’s funding channels.”
The transaction will proceed via a reverse triangular merger between a special purpose company (SPC) wholly owned by TGHL and Enchem Co., Ltd., which is wholly owned by Enchem. Upon completion of the merger, the SPC will be dissolved, and Enchem Co., Ltd. will remain as the surviving entity.
Enchem Co., Ltd. plans to acquire new shares of TGHL as consideration for the merger, securing an 85% stake immediately following the merger. Consequently, the ownership structure will be reorganized into an “Enchem Co., Ltd.-TGHL-Enchem America” framework, and Enchem Co., Ltd. will retain its position as TGHL’s largest shareholder and maintain management control over its U.S. operations. However, the ownership stake may fluctuate depending on future external investment and new share issuances.
Following the merger, Enchem Co., Ltd. plans to pursue phased fundraising of up to $200 million through TGHL. It will attract investment via capital calls based on consultations with global investment firms, with the actual amount and timing of the fundraising to be determined based on the closing of the transaction, investment terms, and market conditions.
The funds raised will be used to strengthen Enchem Co., Ltd.’s production and operational infrastructure, better serve North American customers, and expand local operations. The company aims to enhance the competitiveness of its U.S. operations and strengthen the Enchem Group’s financial flexibility and stability in cash management.