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The Korea Herald
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THE INVESTOR
March 29, 2024

Deals

Ssangyong Materials sale fails to draw investor interest

  • PUBLISHED :December 15, 2016 - 13:17
  • UPDATED :December 15, 2016 - 17:00
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[[THE INVESTOR] Ssangyong Materials has attracted a disappointing number of bidders for its controlling stake worth 100 billion won (US$84.77 million), sending its shares down nearly 15 percent in the morning session on Dec. 15.

Two local companies -- cement manufacturer Union and lubricants maker Kukdong Oil & Chemicals -- participated in the bid for 52.17 percent stake in the firm owned by Ssangyong Cement Industry.




Some companies which have been regarded as strong potential buyers such as SKC, KCC and Iljin Materials didn’t place bids in the final round until the deadline on Dec. 14.

It is in stark contrast to industry watchers’ previous forecast that the bidding race would heat up as it is one of rare small and medium-sized firms that have steadily posted solid earnings.

Shares of Ssangyong Materials shed 14.3 percent to trade at 3,745 won at 11:50 a.m.

The company supplies its core product, magnets used in motors, to major global auto parts companies including Robert Bosch and Valeo Service

It posted 106.5 billion won revenue and 6.1 billion won operating profit in 2015.

Its parent company Ssangyong Cement Industry has put it on sale to dispose non-core businesses as it was acquired by private equity investment firm Hahn & Company last year.

Samil PwC, the lead manager for the deal plans to select a preferred bidder and sign a stock purchase agreement in two weeks.

By Park Han-na (hnpark@heraldcorp.com)

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