MagnaChip (MX) Said it Needs Korean Approval for Wise Road Merger

June 17, 2021 7:04 AM EDT

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MagnaChip (NYSE: MX) is down 5% in pre-open trade after disclosing it needs Korean approval for the Wise Road Capital merger.

From the filing:

June 16, 2021, Magnachip Semiconductor, Ltd., the Korean operating subsidiary of the Company (“MSK”), received a letter from the Korean Ministry of Trade, Industry and Energy (“MOTIE”) requesting MSK to either apply for an approval or file a report, as may be applicable, under Article 11-2 of the Act on Prevention of Divulgence and Protection of Industrial Technology (the “ITA”) concerning the Merger.

Under the terms of the Merger Agreement, MSK’s receipt of the request from MOTIE to apply for approval or file a report pursuant to the ITA concerning the Merger may be deemed to have resulted in the closing of the Merger now being conditioned on the receipt of MOTIE’s authorization without the imposition of a burdensome condition as defined in the Merger Agreement.

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