Kumyang to spin off data center unit in corporate split

Kumyang said Wednesday it will split off a new entity dedicated to data center operations and infrastructure management as part of a strategic restructuring aimed at focusing investment on core businesses and improving its financial structure.

The corporate division, set to take effect Dec. 5, will create a new firm named KYDC to handle data center construction, power supply and energy management services. The subsidiary will also engage in metal recovery, non-ferrous product manufacturing and used battery recycling.

The remaining Kumyang entity will focus on secondary batteries, mineral resource development and its core blowing agent business. Total assets will be divided between the two firms, with the surviving company holding 1.17 trillion won and KYDC starting with 475 billion won.

Shareholders are scheduled to vote on the proposal at a general meeting on Oct. 19. Dissenting investors may then demand share buybacks between Oct. 20 and Nov. 8 at a tentative price of 9,900 won per share. The split will have no impact on the consolidated financial statements, and the largest shareholder's stake will remain unchanged.