[THE INVESTOR] Korea-based IMM Investment and JKL Partners are set to acquire GS ITM, a subsidiary of GS Group, according to industry sources on Dec. 12.
The consortium has signed an agreement to buy 80 percent stake in GS ITM, currently owned by the Korean conglomerate’s owner family, before the year-end.
The two companies will reportedly not take any loans, and invest 50 billion won (US$44.33 million) and 100 billion won, respectively.
GS Group had selected Samil PricewaterhouseCoopers as it acquisition manger in July for the stake sale. Its decision follows a new intra-affiliate trading regulation that was approved by the Cabinet last month. Under the revised version, it is illegal for an affiliate, in which owner family members hold over 20 percent stake, to conduct business with other affiliates that surpasses 12 percent of its total sales.
GS ITM’s major clients are other group affiliates, including GS Retail and GS Caltex, which account for more than half of its total sales.
The company’s sales reached 200.1 billion won in 2017, while posting 6.3 billion won operating profit.
By Song Seung-hyun (firstname.lastname@example.org)