JKL completes exit from Sama Aluminium with $47.4 million

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JKL Investment has fully exited its investment in Sama Aluminium, recovering around KRW 70 billion (USD 47.4 million) and more than doubling its initial investment.

In January 2023, the firm invested about KRW 32.1 billion (USD 21.8 million) in the company. It did this through equity and convertible bonds under its ESG Future Mobility Value Chain fund. The deal included more than 700,000 shares and bonds worth KRW 10 billion (USD 6.77 million). It was meant to support growth in electric vehicles and secondary battery materials.

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JKL started selling part of its stake after the lock-up period ended, offloading some shares between February and June 2024 at prices of KRW 82,000 to 110,000 (USD 55.54 to 74.51). Sama Aluminium’s stock later fell sharply, dropping from nearly KRW 160,000 (USD 108.39) in 2023 to around KRW 20,000 (USD 13.55) last year, as demand hopes weakened during the slowdown in the electric vehicle cycle.

The turning point came when the conversion price of the bonds was adjusted downward, increasing the number of shares JKL could receive. The conversion price was lowered from KRW 34,712 (USD 23.62) to KRW 24,299 (USD 16.53), and the shares it could secure rose from 288,084 to 411,539. From August last year, when the new price took effect, the stock began to recover gradually.

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The firm converted the bonds into equity earlier this year, raising its total shareholding. It then sold all remaining shares in the market, completing its exit within roughly three years. The internal rate of return (IRR) from the investment is estimated at around 40 per cent.

Sama Aluminium produces aluminium foil used as cathode material in secondary batteries, making it part of the broader EV supply chain. The company has also attracted strategic investments from LG Energy Solution and Toyota Tsusho, which continue to hold stakes.

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Improved sentiment in battery materials and concerns over global aluminium supply chain disruptions supported a recovery in the stock this year, with prices currently in the KRW 67,000 to 68,000 range (USD 45.59-46.27). The deal marks an early successful exit for JKL’s mobility-focused investment strategy.