Aekyung Industrial Nears Preferred Bidder Selection... Fierce Price Battle in Three-Way Race

The main phase of the sale to find a new owner for Aekyung Industrial is effectively shaping up to be a three-way competition. Taekwang Industrial, Paul Capital Korea, and Anchor Equity Partners (EP) are fiercely competing with bids in the 500 billion won range.

According to the investment banking industry on August 26, Taekwang Industrial, T2 Private Equity, and Yuanta Investment consortium, as well as Paul Capital, submitted acquisition proposals in the main bidding for Aekyung Industrial, which closed on August 22. Although Anchor EP did not submit a proposal by the deadline, it is reportedly expected to join the process soon.

The main bidding stage requires shortlisted candidates to submit binding acquisition proposals, including their desired purchase price. While there were concerns that Aekyung Group's desired sale price of around 600 billion won was higher than market expectations, potentially leading to some candidates dropping out, all three shortlisted parties ultimately participated in the main bidding.

Samjong KPMG, the sale manager, plans to comprehensively evaluate the acquisition proposals, including funding plans and financial soundness, and select a preferred bidder by no later than September 5.

The key variable in this acquisition battle is the price. The market expects that the party offering the highest acquisition price is most likely to be selected as the preferred bidder. One investment banking industry insider stated, "Since Aekyung Group is pursuing the sale of Aekyung Industrial to secure liquidity, price is likely to be prioritized over post-acquisition management capabilities."

Following due diligence after the preliminary bidding, candidates are believed to have proposed prices in the 500 billion won range in the main bidding, as the 600 billion won sale price was considered somewhat high. All three candidates have demonstrated strong acquisition intent, and it is analyzed that there has been a tense standoff over the acquisition price. They have also stated that there are no issues with their funding. Although Taekwang Industrial recently faced concerns about funding due to controversy over the issuance of exchangeable bonds, the company holds about 1 trillion won in cash. Anchor EP is also evaluated to have around 1 trillion won in unallocated capital (dry powder) remaining in its currently managed blind fund.

The stake up for sale is 63.38% of Aekyung Industrial, owned by Aekyung Group's holding company AK Holdings and Aekyung Asset Management. Aekyung Industrial, which began as Aekyung Oil & Fat Industrial in 1954, is the group's founding business and owns cosmetics brands such as LUNA and AGE20'S, as well as household goods brands like 2080 and Kerasys.

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