Inox to buy 2 billion won in Alton shares, citing 'responsible management'

By Jung Yoon-hee, The Herald Business

Inox, the holding company, said Sunday it will purchase approximately 2 billion won ($1.33 million) worth of shares in its subsidiary Alton on the open market to boost the subsidiary's corporate value and maximize shareholder returns.

The share purchases will begin July 1. Inox said the decision reflects its view that Alton's share price has not fully captured the company's underlying value, even though Alton is expected to post solid earnings this year on the back of a large supply contract signed in January. The company said it wants to signal to the market its strong commitment to responsible management as a holding company.

The move also lays the groundwork for securing stable management control and a stronger ownership position ahead of Alton's planned expansion into new business areas. In January, Alton entered into a three-way strategic partnership with Inox and NowIB Capital to pursue mergers and acquisitions of promising companies and to explore new business opportunities.

Alton's new business ventures are expected to center on physical AI-based robotics or high-value-added semiconductor-related projects. The Inox Group has identified physical AI-based semiconductors and secondary battery materials as its next-generation growth businesses and has been laying the groundwork since the start of the year. Group affiliates have also begun to show tangible results in secondary battery materials and related businesses.

"Alton, Inox and NowIB Capital are reviewing from multiple angles which technologies and industries would best support Alton's mid- to long-term growth," a company official said. "We are not yet at a stage where we can share specifics, but we are mapping out strategies that will benefit both the group and Alton. Once a detailed direction is set, we will notify shareholders immediately through a regulatory disclosure."

Inox is Alton's largest shareholder, holding a 46.6 percent stake as of last year's annual report. Alton CEO Kim Shin-sung also purchased 50,000 shares of the company's own stock worth 100 million won ($68,000) on the open market in early May as part of his own responsible management initiative.