Hanssem Neither Denies Nor Confirms Sale Rumors

Hanssem Sangam Building. [Photo by Hanssem]

[Asia Economy Reporter Kim Jong-hwa] Hanssem, the No. 1 domestic furniture company, has been put up for sale.

According to the investment banking (IB) industry on the 13th, Hanssem is reportedly in sale discussions with several acquisition candidates, including IMM Private Equity (PE), a leading domestic private equity fund (PEF) management firm, and Han & Company.

Hanssem is putting up for sale the shares held by Chairman Cho Chang-geol (15.45%) and related parties holding 30.21%, and is currently negotiating the sale.

Hanssem's stock price (as of the closing price on the 13th) is 115,000 KRW, but including a management premium, Hanssem is said to be hoping for about 250,000 KRW per share. This is more than double the market price, which translates to approximately 1.7 trillion KRW based on the number of shares to be traded.

Among the acquisition candidates, IMM PE is reported to have the strongest acquisition intent and has expressed willingness to meet the seller's desired price, making the deal highly likely. IMM PE is known to plan to utilize the blind fund "Rose Gold 4," raised last year.

Hanssem was also put up for sale in the M&A market about two years ago. At that time, several domestic large corporations and some private equity fund managers negotiated with Hanssem, but the deal fell through due to price disagreements.

Founded in 1973, Hanssem is a specialized home interior company focusing on the manufacturing and distribution of kitchen furniture and interior goods. It was listed on the KOSPI market in 2002 and recorded sales of 2.0674 trillion KRW and operating profit of 93.1 billion KRW last year.

The reason Chairman Cho is trying to sell his shares is reportedly due to the lack of a suitable successor. Born in 1939, Chairman Cho stepped down from management in 1994 and introduced a professional management system. Although he has one son and three daughters, his eldest son passed away in 2002, and the remaining three daughters are not involved in company management.

A Hanssem official said regarding the sale rumors, "We are not in a position to confirm specifics," but added, "However, it seems that more concrete details are being discussed this time." This can be interpreted as meaning that the possibility of a deal is higher than before.

This content was produced with the assistance of AI translation services.