Author Archives: Jennifer Wanninger

UPDATE: Five companies have placed binding bids for Woongjin Foods

Woongjin Foods logoWoongjin Foods received binding bids from five companies at the end of yesterday’s deadline, according to a report in Maeil Business.

According to investment bank sector sources cited in the piece, the bidders include Binggrae, Shinsegae Food, Hahn & Company, Food Empire and Our Home.  The preferred bidder will be identified next week.

The estimated sale price of the company is 100 billion won (USD 89 million).

Distressed Woongjin Holdings and others are seeking to sell a 57.87 percent stake in Woongjin Foods, the unlisted Korean beverage maker.

(Source: Maeil Business)

LIG Engineering & Construction sale fails to attract a buyer

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LIG Engineering & Construction (E&C), the unlisted Korean construction company, has failed to attract a buyer, according to a recent report in the Asia Economy.

The bid deadline of 27 August saw none arrive and the company is now discussing the schedule of a new sale process with an administration court and their financial advisor, PwC South Korea.

LIG E&C was put up for sale under court receivership.

Last year, the company recorded revenues of 246.9 billion won (USD 218.8 million).

(Source: Asia Economy)

IBK to sell subsidiaries IBK Capital and IBK Investment & Securities

IBK logo

IBK, the state-run Industrial Bank of Korea, will sell two if its unlisted subsidiaries, IBK Capital and IBK Investment & Securities, according to a report in the Korea Economic Daily.

IBK’s plan to sell its subsidiaries is to focus on policy-oriented finance and the divestment plan is on point with the current policy of the South Korean administration that the state-run financial firm should focus on policy-financing, instead of private lending and broking.

The IBK stake sale by the government will be delayed until after the sale of the businesses.  The government plans to sell an 18.9 percent stake to raise 1.7 trillion won in IBK.  At the moment, the government holds 68.9 percent in IBK.

IBK Capital, a wholly owned subsidiary of IBK, had a net profit of 27.2 billion won in the first half of 2013.  While, IBK Investment & Securities recorded revenues of 102.7 billion won in the first half of this year.

(Source: Korea Economic Daily)

Hwashin Tech sells stake in Sae Hwa Shin

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The listed Korean machinery maker, Hwashin Tech, announced via a stock exchange statement yesterday that it has agreed to sell their 40 percent stake for 33 billion won (USD 29.6 million) in Sae Hwa Shi, the unlisted car parts makers, to the latter.

According to the company, they reportedly sold the stake to improve their financial structure.

Youngheung Iron & Steel to merge with Sehwa Express

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Yesterday, the listed Korean manufacturer, Youngheung Iron & Steel announced through a stock exchange statement that it would absorb Sehwa Express through a share swap in order to boost management efficiency.  One share of Sehwa will be swapped for every 739.0654167 shares of Youngheung.  EGMs will be help on 14 October to receive shareholder approval.  The merger will take effect on 18 November 2013.

Founded in 1972, Sehwa Express is a Korean marine transportation company engaged in freight, distribution and stevedoring and last year the company recorded sales of 33.7 billion won (USD 30.3 million).

Youngheung is a leader in the shipping material industry.  The company has a market cap of 146.4 billion won (USD 131.5 million).

Kogas suspends stake sale in Santos GLNG project

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Korea Gas Corporation (Kogas) has officially suspended its plan to sell their stake in the Santos GLNG project, according to a report in Money Today.

An energy sector source was cited as saying that the sale process of the stake in the Australian gas project was suspended as due diligence discovered that the project would likely not draw investment.

Kogas mandated Ashurst, Ernst & Young, Rothschild and Samsung Securities as advisories for the potential stake sale previously.

Kogas was planning on selling two-thirds of its 15 percent stake in the project.

Kogas acquired the 15 percent stake in 2010 for AUD 665 million (USD 673 million).

(Source: Money Today)

MBK Partners to acquire ING Korea

ING Life logo

MBK Partners, the Korean PE fund, will acquire ING Korea from ING, the Netherlands insurance group, through a stock purchase agreement (SPA) today, according to a report in the Maeil Business.

Investment bank sources were cited as saying that MBK Partners will sign the agreement today or 26 August at the latest.

The PE fund has finalized the acquisition financing and will acquire 100 percent of ING Korea for 1.8 trillion won (USD 1.6 billion).

(Source: Maeil Business)

Dongbu Express receives four binding bids

Dongbu Express

The Dongbu Express sale has received four binding bids as of the 20 August deadline from Q Capital, KStone, Standard Chartered Private Equity, and IBK Investment & Securities, according to a report in the Korea Economic Daily.

Dongbu Corporation, the Korean construction company, put a 50.1 percent stake in Dongbu Express up for sale and the second largest shareholder, a special purpose vehicle of Shinhan Capital and KDB Capital hold the remaining stake and might sell their stake as well by exercising a tag-along option.

A 100 percent stake in Dongbu Express is expected to go for more than 300 billion won (USD 260.5 million).

(Source: Korea Economic Daily) 

10% stake in Innocean Worldwide for sale

logoInnocean

Hyundai Motor Company’s advertising agency, Innocean Worldwide, will put a 10 percent stake up for sale, according to a report in the Korea Economic Daily yesterday.

Chung Mong-koo Foundation, named after the president of the group, has decided to sell the stake according to investment bank sources cited in the article.

Goldman Sachs will be the financial advisor on the sale.

Innocean Worldwide recorded sale of 411.2 billion won (USD 367.6 million) last year.

(Source: Korea Economic Daily)

Kumho Industrial creditors to grant Kumho Asiana Group president first refusal rights for controlling stake

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Kumho Industrial will grant Park Sam-gu, the president of the Kumho Asiana Group, the first refusal rights for their controlling stake in the listed Korean constructor, according to a report by the Chosun Ilbo.

Creditors will sign a memorandum of understanding (MoU) under which President Park may acquire a stake in Kumho Industrial if he succeeds in rehabilitating the company.  The creditors have a combined 77 percent stake in the company.

The creditors plan to commence a stake sale in Kumho once the company ends its debt workout process around the end of 2014; however, the sale could be delayed depending on the market situation.

Kumho Industrial has a market cap of 494.4 billion won (USD 443.2 million).

(Source: Chosun Ilbo)