Approx. 95.6B KRW In-Kind Split, Neovue Relisting

TOVIS decides to spin off its automotive display business into Neovue via an in-kind split. Split ratio 0.3536822; Neovue to be re-listed on KOSDAQ.
Neovue inherits net assets of approx. 95.6B KRW (as of June 2025) and issues 5,276,175 new shares. Existing shareholders receive Neovue shares proportionally.
KRX preliminarily approved Neovue's re-listing on March 12, 2026. Shareholder meeting for split approval scheduled for June 2, 2026.
Post-split, Neovue's debt ratio rises to 158% (pre-split 146.6%), while the surviving company's debt ratio is 61.2%. Neovue's operating margin: 7.1% in 2025 → 5.4% in Q1 2026.
Risks: Neovue's top 2 customers account for 79.1% of sales; surviving company's top 2 account for 57%. Surviving company's US sales at 72% exposes tariff risk. Possible split disapproval.
Shareholder return policy: 2026-2028 target 30% of standalone net income via buyback (20%) and dividends (10%). In Q1 2026, bought back and cancelled 129,418 shares (~2B KRW) and cancelled 779,797 treasury shares.
Management stability: major shareholders entered voluntary lock-up (17.85% for 3 years) and joint voting agreement (22.51%).