Publisher Yearimdang buys chip-gear maker for 34B won, shares slide 7.5%

What's the deal? Yearimdang PublishingDealroom has a profile for this one. Try Dealroom →, the Korean publisher behind the educational comic series "Why?," is buying a 90% stake in unlisted semiconductor-equipment maker Future Hightech for 33.95 billion won. The move marks a sharp pivot from books into chip gear, funded by cash from selling control of T'way AirDealroom has a profile for this one. Try Dealroom →. Investors balked: Yearimdang shares fell 7.5% on August 25.

Why now? Yearimdang's core publishing business is weakening. First-half revenue was just 5.6 billion won and it posted a loss, while total equity stood at 264.7 billion won as of the end of June. "We determined we had to generate revenue as quickly as possible by using the funds we secured," the company said.

What's the endgame? The deal aims to plug high-margin semiconductor income into a shrinking publisher. Future Hightech makes motherboards for high bandwidth memory (HBM) burn-in testers, which check whether chips work at high temperatures. Most of its revenue comes from a first-tier supplier to SK hynixDealroom has a profile for this one. Try Dealroom →.

The money. Future Hightech posted first-half revenue of 21.6 billion won and net income of 3.6 billion won. The 33.95 billion won price equals 13.27% of Yearimdang's equity capital of 255.8 billion won. Yearimdang funded the push with roughly 200 billion won raised by selling 44.47 million T'way HoldingsDealroom has a profile for this one. Try Dealroom → shares to Sono Trinity GroupDealroom has a profile for this one. Try Dealroom → for about 212.4 billion won — proceeds that also let it pay a dividend for the first time in 12 years.

What could go wrong? The market sees little link between publishing and chips, raising doubts about synergy. Critics also argue Yearimdang overpaid for a relatively small target, even as the semiconductor sector booms.

The signal: The HBM test market gives the bet some logic. Shinhan Investment & SecuritiesDealroom has a profile for this one. Try Dealroom → expects domestic memory makers' HBM capacity to rise by more than 80,000 wafers this year, projecting demand for 220 to 230 HBM burn-in testers in Korea. Vendor lock-in is strong: qualification can run up to a year, so approved suppliers tend to keep contracts long term — a durable moat if Yearimdang can hold its foothold.

Read more: biz.chosun.com

Image credit: IBM Research