Orbitech, a total solutions provider for nuclear power and radioactivity, announced on the 10th that it will acquire approximately 5.07 million shares of KOSDAQ-listed Finetechnics for 25 billion won. This represents 22.9% of Orbitech's total assets, and its stake after the acquisition will be 29.8%.
Orbitech plans to use its cash on hand and convertible bonds to pay for the shares, and will acquire additional shares by fully subscribing to 3.6 million new shares issued by Finetechnics through a three-party paid-in capital increase. Upon completion of the subscription, Orbitech's stake will increase to approximately 42.1%.
Since its founding in 2009, Finetechnics has established overseas sales subsidiaries in Mexico, India, and Indonesia, and participated in a local plant construction project in the United States in 2023. In 2024, it will strengthen its brand awareness by winning the contract for the S-Oil Shaheen project.
An Orbitech official said, “The second-generation LED explosion-proof lighting fixture developed by Finetechnics has obtained the highest level T6 certification from IECEx, ATEX, and KCs, and is being supplied to numerous organizations and companies at home and abroad.” He added, “We are seeking ways to create synergy with our existing business, and Finetechnics’ experience and network will be helpful in expanding our business areas.”
Orbitech CEO Do Eun-seong stated, "Orbitech possessed nuclear power-related technology and expertise, but its business scope was limited. We expect this acquisition to diversify and expand our business." He added, "Despite the approximately 30 billion won capital requirement, we secured sufficient cash equivalents through the sale of convertible bonds, a small capital increase, the issuance of convertible bonds, and the sale of marketable securities to ensure liquidity, ensuring operational stability."
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