April 23, 2024

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[THE INVESTOR] Korean private equity fund VIG Partners has signed an agreement to acquire Klasse Auto, the largest dealer of Volkswagen cars here, for 20 billion won (US$17.54 million), according to media reports on Sept. 27. 

Under the stock purchase agreement, VIG Partners will take over 84 percent stake in the dealership that once enjoyed success before the VW emissions-rigging scandal. It plans to buy the remaining stake in the future. 

VIG Partners was unavailable for comment. 

Klasse Auto, established in 2002, began selling VW cars in 2005. Buoyed by VW’s popularity here, Klasse Auto’s profits soared, until last year when the diesel scandal erupted that basically halted operations of the carmaker in Korea. 

VIG Partners, which already has used car retailer and maintenance provider Autoplus under its portfolio, will be able to jump into the used car sales for imported cars through the purchase and expand its business, industry watchers say. 

Earlier in April, the Seoul-based PEF bought the entire stake of Autoplus for 110 billion won.

By Ahn Sung-mi (sahn@heraldcorp.com)