OCI struggles to win support for spinoff plan

• Published date: 10 March 2023
• Publication title: The Korea Times

OCI, a Korean polysilicon producer for solar power generation, is grappling with strong opposition to its plan to spin off the company into OCI Holdings, a holding firm for investments, and a new subsidiary named OCI, which will specialize in the chemicals business, according to industry officials, Friday.

Earlier this month, the Institutional Shareholder Services (ISS) recommended OCI shareholders vote against the spinoff plan at the forthcoming general meeting on March 22. The world's leading proxy adviser previously opposed Hyundai Department Store's spinoff as well, leading the National Pension Service (NPS) and other shareholders to thwart the retailer's plan last month.

OCI's plan has already drawn a backlash from a group of the company's minority shareholders in Korea, who have claimed that the spinoff is intended to strengthen the control of Vice Chairman Lee Woo-hyun, the company founder's grandson. The minority shareholders fear that the value of their shares could fall sharply after the planned spinoff.

Considering the fact that Lee and his allies collectively hold around a 23 percent stake in OCI, the management is desperate for support from foreign and minority shareholders for the spinoff plan. The stance of NPS is also critical to OCI because the...