The final bids for Daesung Industrial Gases are scheduled to be submitted by end-January, continuing the series of major acquisition deals after the Kumho Tire bids.
Daesung is South Korea’s second largest producer of various gases for industrial use. The company’s sales came to 581 billion won (US$483.45 million), while operating profits came to 53.88 billion won last year.
A number of strategic investors including Korea’s SK and Hyosung groups, Germany’s Linde Group and US-based Prixair, as well as financial investors such as the multinational private equity fund Blackstone Group have shown interest in the deal.
Local reports, however, have speculated that SK and Hyosung may step back from the deal, citing the scale of funds involved, which some projected to be as high as 1.5 trillion won.
The final bids for Kumho Tire are scheduled for Jan. 12. The deal for 42.1 percent stake in the company is expected to fetch around 1 trillion won for the creditors.
By Choi He-suk (firstname.lastname@example.org