IL Science, a KOSDAQ-listed company in South Korea under ticker 307180, approved a plan on Sept. 10 to acquire an 80% stake in semiconductor equipment maker Lead Engineering for KRW 12.8 billion. In a same-day filing to the Financial Supervisory Service’s DART disclosure system, IL Science said the deal is aimed at entering the silicon carbide (SiC) power semiconductor equipment business and securing new growth by expanding its business portfolio. The scheduled acquisition date is Sept. 18.
Deal size and ownership to be acquired
The filing states that IL Science will acquire 800 shares in Lead Engineering, equal to 80.0% of the company’s 1,000 issued shares. The purchase price is KRW 12.8 billion, or about $9.5 million. Based on that figure, the implied valuation for all of Lead Engineering is about KRW 16 billion.
IL Science listed its equity capital at KRW 45.5 billion in the notice, making the acquisition price equivalent to 28.13% of that amount. Based on total assets of KRW 154.7 billion at the end of the latest fiscal year, the ratio is 8.27%. The consideration will be paid in cash and in-kind contribution.
Lead Engineering’s business and financials
Lead Engineering is registered in Ochang-eup, Cheongwon-gu, Cheongju, North Chungcheong Province. Its main business is the manufacture of machinery used in semiconductor production. Before the acquisition, the company’s largest shareholder and representative director, Kim Hyun-ho, held all 1,000 shares, representing 100% ownership.
For fiscal 2025, Lead Engineering reported revenue of KRW 10.334 billion, net profit of KRW 1.018 billion, total assets of KRW 14.562 billion, total liabilities of KRW 3.119 billion, total equity of KRW 11.443 billion, and stated capital of KRW 800 million. The filing said the external audit opinion was unqualified.
The notice also said IL Science and Lead Engineering had no prior relationship and no record of transactions beyond ordinary business dealings during the past three years.
Call and put option terms on the remaining shares
The filing says the transaction includes both call and put options. The buyer, or a party designated by the buyer, will have a call option over all or part of the remaining shares. That option can be exercised from the first anniversary of the closing date through the fourth anniversary, and the buyer may choose to exercise it in whole or in part.
The agreement also sets an early trigger. If the seller leaves early without justifiable cause, or is removed because of willful misconduct or material attributable cause, the buyer may immediately exercise the call option before that standard exercise window begins. On the seller’s side, after 24 months from the closing date, the seller may require the buyer to purchase all or part of the remaining shares.
Board resolution and other disclosures
The board resolution was passed on Sept. 10. The filing says one outside director attended and one was absent, while the auditor was present. The transaction is not subject to reporting to the Fair Trade Commission and does not constitute a backdoor listing.
The original report added that recent demand for silicon carbide has come from power semiconductors. It also cited an earlier Chain News report saying silicon carbide has become a key material in Nvidia’s 800VDC architecture.