] Dongwon Group has agreed to buy Dongbu Express, the country’s third-largest logistics company, for 425 billion won (US$359 million) after a months-long price negotiation, according to sources on Dec. 16.
The processed food and fisheries conglomerate Dongwon Group will acquire entire stake in Dongbu Express from KTB Private Equity and Q Capital Partners
for 45 billion won less than what it had initially proposed.
The two-sides broke a lengthy deadlock over price disagreements with a condition that the sellers won’t be responsible for contingent liabilities which could occur following the stake disposal in exchange for the 9 percent price cut.
Recently, speculation had been rampant that the talks are close to falling apart as it was more than three month since Dongwon signed a memorandum of understanding to secure exclusive rights for negotiations with the private equity firms in September.
The deal will be formally announced after signing a legally binding agreement as early as Dec. 16.
With the transaction, Dongwon seeks to enhance the company’s existing logistics business line led by Dongwon Industries and create synergy effects with its fishing, food and packing material units.
The annual revenue of Dongwon Group’s logistics business is expected to surpass 1 trillion won after the tie-up, as Dongbu Express, which provides logistics services, including stevedoring, trucking and warehousing, posted revenue of 719.5 billion won in 2015.
KTB Private Equity and Q Capital Partners made a profit of 115 billion won through the deal as they bought Dongbu Express for 310 billion won in 2014.
By Park Han-na (email@example.com)