OCI Co., a South Korean chemicals manufacturer, said Wednesday it will spin off its chemicals division under a new holding company, as it seeks to reshape the corporate structure to bolster chip and battery materials as future growth engines.

The decision was approved during a shareholders meeting earlier in the day, with 80 percent of the attendance voting for the spinoff plan, OCI said.

A new OCI will be created as a subsidiary that engages in the manufacturing of advanced materials, such as semiconductor and secondary battery components, and the existing company will turn into a holding firm, OCI said.

OCI Holdings will spearhead the flagship solar panel materials and city development businesses. The new chemicals unit will focus on expanding the foothold in chip and battery materials sectors.

Shareholders will receive the same amount of shares in the new subsidiary proportionate to their current stakes in the existing company, with a split ratio of 69:31 for OCI Holdings and OCI, respectively.

The spinoff will take place May 1, and the new subisidary will be relisted May 29.

Source: Yonhap News Agency