K Wave Media Signs Exclusive LOI To Acquire Controlling Interest In South Korean Semiconductor‑Materials Company; Terms Not Disclosed

K Wave Media Ltd. (Nasdaq: KWM) announced it has entered an exclusive Letter of Intent (LOI) with the shareholders of a privately held South Korean semiconductor-materials company (the target company) to acquire a controlling interest in the company. Under the LOI, KWM intends to acquire 50% plus one share, subject to due diligence, definitive agreements, financing, regulatory approvals and customary closing conditions. The parties expect to complete due diligence over the next four weeks, execute a Share Purchase Agreement by the end of August 2026 and target closing of the transaction by the end of October 2026.

The target company is a Korea-based developer and manufacturer of proprietary advanced materials and specialty chemicals used in the production of semiconductors and related electronic components. The company has built differentiated process technology and an established intellectual property portfolio in its field, and its materials are used by customers serving both domestic and global end markets. Based on audited financial statements prepared in accordance with a non-U.S. accounting framework (the Accounting Standards for Non-Public Entities in Korea), the company delivered strong double-digit revenue growth from 2024 to 2025, together with meaningful expansion in both EBITDA margin and net income margin.