] A consortium led by private equity firm LK Investment Partners has been named preferred bidder to acquire Hyundai Cement
, the nation’s sixth-largest cement manufacturer, its main creditor Korea Development Bank announced on Feb. 16.
The purchasing price is 650 billion won (US$567 million), about 30 billion won higher than the second-highest price offered by IMM Private Equity. A total of six firms competed in the final bid.
LK Investment Partners plans to acquire an 84.56 percent stake in the firm. Based on the firm’s closing price of 29,000 won on Feb. 16, the buying price includes a 70 percent premium.
Industry watchers say when Hanil Cement
joined the consortium as a strategic investor it played a key role in winning the bid. Hanil, the nation’s second-largest cement producer, is expected to raise its market share from the current 12 percent to 25 percent.
KDB plans to finalize the deal by May.
By Park Yuna (firstname.lastname@example.org