The major shareholders of South Korean switched-mode power supply (SMPS) manufacturer Powernet Technologies Corp. agreed to sell their majority stake in the firm to local semiconductor and display equipment parts maker Wizit Co. at 20 billion won ($17 million).

According to investment industry sources on Wednesday, Korea’s secondary, tech-heavy stock market Kosdaq-listed Wizit inked a contract with KB Securities Co. and IGen Investments Co. to take over a 46.32 percent stake in Powernet Technologies at 20 billion won. KB Securities and IGen Investments currently hold a combined 92.6 percent stake in the SMPS manufacturer through a private equity fund they established together.

Powernet Technologies is one of the top five electric power supply regulator makers in Korea and its customers include electronics giant Samsung Electronics Co. For the full year of 2016, it is estimated to have gained 7 billion won in operating profit on sales of 138 billion won, growing at a double-digit rate from the previous year. It currently operates two production bases in China and has actively been expanding its sales network.

The SMPS maker joined the Kosdaq bourse in 1999 but was delisted in 2005 following a sharp fall in sales and failed attempts in new businesses. But with the financial injection by KB Securities and IGen Investments, Powernet Technologies has been able to restore its business and is preparing to re-join the secondary stock market in the third quarter this year. It appointed Dongbu Securities as the underwriter last month.

Wizit that agreed to purchase the stake in the SMPS maker with an aim to diversify its revenue sources plans to fully cooperate with KB Securities and IGen Investments to list Powernet Technologies on Kosdaq this year, it said.

Powernet Technologies is expected to continue to post solid earnings as its mainstay product SMPS can be applied to a wide range of sectors such as military equipment and office and medical equipment on top of consumer electronics, said an investment bank industry official.

By Chun Gyung-woon

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