Unichem pursues business diversification through Loomia Technologies merger

Unichem said its subsidiary Unichem Merger Sub will merge with Loomia Technologies on Oct. 15, with Unichem Merger Sub to be dissolved in the transaction, according to a regulatory filing on Aug. 5.

Unichem's board approved the merger on Aug. 5, the day on which the company made the regulatory disclosure setting out its plan. Under the terms, consideration will consist of cash and treasury-share transfers, plus performance-contingent convertible bonds, called earn-out CBs in the filing.

Loomia Technologies was assigned a company value of 6.3 million dollars under the merger terms set out in the filing. For the currency conversion, the filing applied an exchange rate of 1,429 won, using Aug. 4 as its transaction reference date.

Loomia's latest financial statements used the business year that ended in December 2025 as the reporting basis for the reported figures. The company reported total assets of 35 million won and capital of 32 million won, against total liabilities of 441 million won. It posted revenue of 419 million won, total equity of negative 406 million won and a net loss of 510 million won for that year, according to the filing.

Unichem identified business diversification as the purpose of the merger, while its core business is manufacturing natural leather materials for automotive seats, handbags, bags and shoes. During the first quarter of 2026, leather sales came to 19.211 billion won and accounted for 99.9 percent of its total revenue.

Leather-product sales increased from 65.309 billion won in 2024 to 104.642 billion won in 2025, according to the company's reported sales history. The reported sales history also listed leather-product sales of 19.210 billion won for the first quarter of 2026.

Unichem's future-mobility materials strategy includes development of eco-friendly leather and electronic-textile-based smart leather solutions across its automotive and industrial-materials businesses. The company is pursuing business expansion beyond next-generation mobility, adding robotics and medical applications as target fields in its materials strategy.

The company supplies leather materials used by Hyundai Motor in its Grandeur, Palisade and Tucson models, as well as by Kia in K5 and Sportage models. It is also pursuing expansion into the specialized-materials market for railway and aviation applications through domestic localization of fire-retardant seat materials for the KTX EMU-320.

On Aug. 5, Unichem separately disclosed a decision to acquire shares and equity securities in another company through a regulatory filing. On July 30, the company's disclosures included results of a paid-in capital increase or issuance of stock-related bonds among its filings that day. A general large-shareholding report and a report on changes in shareholdings by its largest shareholder and others were also filed that day.

Separately, Unichem disclosed an occurrence of suspected embezzlement or breach of trust on July 23 in an earlier regulatory filing.