The BGF Group logo. [BGF Group]
The BGF Group logo. [BGF Group]

BGF announced Thursday that it will acquire all shares of KNW held by its subsidiary BGF EcoMaterials. The move gives the BGF Group a three-pillar structure covering BGF Retail (retail), BGF EcoMaterials (engineering plastics) and KNW (semiconductor materials).

BGF disclosed Wednesday that it will purchase 9,113,891 common shares of KNW, representing a 56.9 percent stake. As a result, KNW — previously a second-tier subsidiary — becomes a direct subsidiary of BGF, while BGF Eco Specialty, formerly a third-tier subsidiary, moves up to second-tier status. The restructuring simplifies the group's governance from four layers to three.

BGF Eco Specialty, which KNW holds, manufactures specialty gases for the semiconductor industry. In September, it completed a factory at the Onsan National Industrial Complex in Ulsan capable of producing about 50,000 tons of anhydrous hydrofluoric acid per year — roughly half of domestic demand.

BGF EcoMaterials plans to allocate the proceeds from the KNW share sale across three areas: strengthening core business competitiveness, improving its financial structure and enhancing shareholder value. Separately, it will cancel all 842,699 treasury shares it currently holds, representing a 1.3 percent stake, next month.

"This governance restructuring will lay the groundwork for strategically nurturing future growth engines and establishing a system of accountable management, maximizing the capabilities of every business unit and raising the group's overall competitiveness," a BGF official said.


korean@heraldcorp.com