Recently, GEM (002340) issued an announcement disclosing that its wholly-owned subsidiary, Jingmen GEM New Materials Co., Ltd., plans to sell its holdings of ECOPRO MATERIALS CO., LTD. (ECOPRO MAT, stock code: 450080. KS).
1.Shareholding and purpose of sale Jingmen GEM New Materials Co., Ltd. currently holds 2,022,074 shares of ECOPRO MAT, representing 3% of the total share capital, which were subscribed for by ECOPRO MAT prior to its IPO12 The purpose of the sale is to maximize shareholder value, optimize GEM's asset structure, improve the liquidity and efficiency of assets, and meet the capital needs of the construction of Indonesia's green nickel resource park. 2.ECOPRO MAT company profile ECOPRO MAT was established in 2017 with a registered capital of KRW 35.163 billion, focusing on the production of cathode material precursors for lithium batteries. 3.Sale Scenarios and Impacts Nomorethan2,022,074sharesofECOPROMATwillbesoldthroughatradingmethodpermitted by theKoreaExchange,andthesalepricewillbedeterminedaccordingtomarketconditions. There is no dispute over the rights of the sold stock assets such as mortgage and pledge,and there are no judicial measures. ThetransactionwillhelpoptimizeGEM'sassetstructure,improveliquidityandefficiency,maximizeshareholdervalue,andwillnotharmtheinterestsofthecompanyandallshareholders.
