April 19, 2024

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[THE INVESTOR] SK Group has teamed up with Australia’s largest investment bank Macquarie Group to join an estimated 3 trillion won (US$2.80 billion) bid for ADT Caps, the nation’s No. 2 security firm that has been put up for sale by US private equity giant Carlyle Group, according to industry sources on March. 7.

The SK-Macquarie consortium will compete head-on with CVC Capital, the world’s sixth-largest private equity firm that is leading another consortium along with Singapore’s sovereign wealth fund GIC.

Macquarie submitted its non-binding bid a day after the Feb. 19 deadline. Sources say SK may have decided to join the bid at the last minute.

SK has been frequently cited as one of the potential bidders for ADT Caps after it participated in the bidding back in 2014 along with Carlyle. At the time, Carlyle acquired ADT Caps from Tyco International for 2.6 billion won. SK has also continued its security business through SK Telecom that acquired a smaller security firm, called NSOK, in 2014.

The high price has been an issue even for the nation’s third-largest conglomerate. Sources say that’s why it has partnered with cash-abundant Macquarie that has invested heavily in Korean infrastructure projects for years.

The deal is likely to be closed this month. With the powerful bidder joining, the price is expected to exceed 3 trillion won. In the meantime, Canada’s Brookfield Asset management has reportedly left the CVC consortium.

By Lee Ji-yoon (jylee@heraldcorp.com)