April 17, 2024

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South Korean clothing maker Sae-A Trading will buy Tailim Packaging’s controlling 60.5 percent stake for 213.8 billion won ($180.3 million) from IMM Private Equity, Tailim said on Oct. 15.

According to a regulatory filing, IMM Private Equity and Sae-A agreed Oct. 15 on the deal involving some 41.7 million ordinary shares of the Seoul-based corrugated box maker. The transaction is to be complete by January 2020.

The new shares, which are trading on the nation’s main Kospi bourse, will go to Sae-A or one of its subsidiaries, according to the disclosure.

Related:
Sae-A to acquire fiberboard maker Tailim Packaging


The deal comes along with the 100 percent stake acquisition of cardboard paper Tailim Paper and Tailim’s Pyeongtaek, Gyeonggi Province, operation -- which are part of the IMM Private Equity portfolio -- by Sae-A in an undisclosed amount of purchase.

This came a month after Sae-A was picked as the preferred bidder for the takeover of the stake in Tailim Packaging and Tailim Paper in what was touted as a 1 trillion-won package deal. IMM Private Equity bought the controlling stake for the two companies for some 350 billion won in 2015 and the operation in Pyeongtae, for about 10 billion won in 2017.

In part buoyed by the growing presence of e-commerce in Korea, Tailim Packaging turned around in 2018, with net profit of 28.9 billion won. Tailim Paper’s net income jumped threefold in 2018 to 80.9 billion won.

By Son Ji-hyoung (consnow@heraldcorp.com)