Hana Micron: Split into Hana Semiconductor Holdings and Hana Micron

• Hana Micron Inc (067310 KS) announced its plan to split into Hana Semiconductor Holdings and Hana Micron (a newly established company).

• Existing shareholders will receive shares of the two companies in equal proportions according to the split ratio which is 32.5% for Hana Semiconductor Holdings and 67.5% for Hana Micron.

• We remain negative on Hana Micron. The valuation of the company remains stretched. In addition, there are increasing concerns about the company's new plan to split into two different companies.