A deal for selling an award-winning South Korean battery equipment firm has fallen through, triggering controversy over who or what was the problem, industry sources said on Jan. 16.
They noted that Chinese energy firm Blest has issued a disclosure saying that it won’t be acquiring Him-tech because the Korean firm’s assets such as the battery equipment, the patents and the personnel weren’t being properly handed over. It added that due to this breach of contract, Him-tech forked over 1 million yuan (KRW 168 million) to Blest as a penalty.
On Oct. 25, 2018, Blest signed a deal with Him-tech’s major stakeholders to acquire a controlling stake in the company. Under the deal, battery equipment division was to be split off, with Blest acquiring a 60% stake with cash by January, 2019. The total amount of the deal was kept under wraps.
As indicated in the deal, Him-tech said that Blest executives had visited its plant and offices to conduct a due diligence. However, it explained that the trip had been merely a get-to-know session, and not a proper process.
“Initially, we were asked to lend our name to Blest, and we had not signed an acquisition deal,” said a Him-tech official. He added that in the early days, Blest had used their name to bag orders. . Him-tech, however, declined to comment on the penalties paid.
Him-tech was established in 2000. In the battery business, it produces equipment for making battery material and automation lines. The firm has previously supplied LG Chem. In 2019, Him-tech was given the Order of Industrial Service Merit for exporting a record amount of their products.
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