April 20, 2024

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[THE INVESTOR] Taiwan-based snack food giant Want Want Group is the latest to submit a preliminary bid to acquire Woongjin Foods from private equity firm Hahn & Co, according to industry sources on Oct. 26.

Want Want has reportedly shown strong interest in acquiring 74.75 percent stake in the Korean beverage company and has sent more than 20 officials for conducting due diligence.

There are two other likely candidates that will be competing with Want Want -- Hyundai Investment Partners and Taiwan-based food company Uni-President. Before Want Want decided to enter the bid, industry watchers had projected the Hyundai affiliate as the most likely candidate to be picked as preferred bidder due to its purchasing power.

Although Hahn & Co. hopes to secure over 300 billion won (US$262.37 million), industry insiders expect the deal to be worth less, since it does not hold the entire stake in Woongjin Foods.

The PEF acquired 57.87 percent stake in Woongjin Foods from Woongjin Group in 2013 for 115 billion won. The company additionally spent 40 billion won to increase its stake to 74.75 percent.

Woongjin Foods posted sales of 223.5 billion won last year with operating profit of 14.2 billion won, turning to black from a loss of 1.1 billion won in 2013. The beverage firm’s profit has improved as it focused on selling items with more market competitiveness such as drinks that can be stored at room temperature.

By Song Seung-hyun (ssh@heraldcorp.com)