Taekwang Group has entered the acquisition battle for Ok Shipbuilding alongside Texas Pacific Group (TPG), a worldwide personal fairness fund (PEF).
In accordance with the funding banking (IB) trade on Nov. 13, Taekwang Group fashioned a consortium with TPG and just lately submitted a letter of intent (LOI) to the promoting facet for Ok Shipbuilding’s administration rights. The present largest shareholder of Ok Shipbuilding is the United Asset Administration (UAMCO) and KHI consortium, which holds a 99.58% stake. The market estimates that the sale worth will likely be fashioned at as much as 500 billion gained.
No less than three or extra events, together with the Taekwang and TPG consortium, have entered the Ok Shipbuilding acquisition battle. Specifically, U.S. capital is reportedly exhibiting nice curiosity on this acquisition because the Korean shipbuilding trade is rising as a core axis of the MASGA (Making American Shipbuilding Nice Once more) mission.
United Asset Administration (UAMCO) and the KHI consortium acquired a 99.58% stake in Ok Shipbuilding in 2021. The promoting facet obtained first-round letters of intent till Nov. 12, and extra negotiation tables are anticipated to be opened if there are candidates who current larger costs later. Samil PwC is serving because the sale supervisor for this transaction, with Hwawoo offering authorized advisory providers. The plan is to conduct the primary bidding early subsequent yr after due diligence by the possible patrons.
Ok Shipbuilding is taken into account one of many corporations that may count on direct advantages from the MASGA mission. It’s because the Republic of Korea Navy Fleet Help Unit (CFAC) is situated in Jinhae, South Gyeongsang Province, the place the shipyard is located, and the corporate has expertise constructing warships previously. Ok Shipbuilding additionally has the objective of securing the U.S. Navy’s upkeep, restore, and overhaul (MRO) enterprise for 32 vessels yearly within the medium to long run.
Taekwang Group just lately acquired the administration rights of Aekyung Industrial Co., a core affiliate of Aekyung Group, and likewise entered the acquisition of Aegis Asset Administration, Korea’s prime actual property asset administration firm. An IB trade official mentioned, “Because the downturn in Taekwang Group’s core chemical enterprise has extended, the group is actively pursuing new companies and redrawing the general blueprint for the whole group.”
