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THE INVESTOR
December 13, 2019
Big Reunion

Deals

S. Korean PEFs join final bid for SKC Kolon PI’s controlling stake

  • PUBLISHED :November 04, 2019 - 20:37
  • UPDATED :November 04, 2019 - 20:39
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South Korea’s private equity firms have joined a final bidding round for SKC Kolon PI’s controlling stake Nov. 4 amid market concerns about overpricing.

Those joining the round include Hahn & Co. and Glenwood Private Equity, according to industry sources. MBK Partners, Korea’s largest PE firm by AUM, has reportedly walked away from the bidding for what is roughly valued at 700 billion won ($603.2 million) -- market price plus control premium. 

Related:
SKC, Kolon Industries mull sale of polyimide film maker JV


On Sept. 17, SKC and Kolon Industries agreed to divest a 54.06 percent stake in their joint venture, SKC Kolon PI, trading on the Korea Exchange’s development board Kosdaq. The stake is evenly controlled by the two companies, which plan to issue details about the bidding results -- including a preferred bidder -- by Nov. 11.

SKC Kolon PI’s market cap topped 1 trillion won as of the Nov. 4 closing, having jumped nearly 20 percent over 20 trading days and rendering the stake up for sale worth some 540 billion won according to the market price.

The upbeat stock performance, however, stood in contrast to shrinking profit in the third quarter of 2019. The company’s quarterly operating profit reached 14.5 billion won, down 21.4 percent on-year, according to preliminary data.

Based in Suwon, SKC Kolon PI makes heat-resistant polyimide films for foldable smartphones and secondary cells for electric cars, and is considered one of the four major global players along with DuPont-Toray, Kaneka and UBE Industries.

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

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