HD Hyundai Oilbank Selected as Preferred Bidder for Acquisition of Daekyung O&Tech, Korea's Top Biofuel Producer

Participating as a Strategic Investor in the Tenet PE Fund

HD Hyundai Oilbank has been selected as the preferred bidder in the acquisition of Daekyung O&Tech, the largest producer of biodiesel feedstock in Korea.

According to industry sources on April 13, Deloitte Anjin, the sale manager for Daekyung O&Tech, recently selected the consortium of HD Hyundai Oilbank and Tenet Equity Partners as the preferred bidder for the acquisition. The stake for sale is 100% of Daekyung O&Tech, jointly owned by SK On, Eugene Private Equity, and Korea Development Bank PE. The transaction is reportedly valued at around 500 billion won.

Daekyung O&Tech, established in 1995, produces sustainable aviation fuel (SAF) and biodiesel feedstock using waste cooking oil and animal fats. It is the top player in Korea's animal fat market. Last year, the company posted sales of 501.3 billion won and an operating profit of 35.6 billion won. Currently, Eugene Private Equity and Korea Development Bank PE hold a combined 60% stake, while SK On holds the remaining 40%.

The motivation behind HD Hyundai Oilbank's pursuit of Daekyung O&Tech is interpreted as being related to the rapid growth of the SAF market. A representative from HD Hyundai Oilbank explained, "We participated as a strategic investor in the acquisition to secure a stable supply base for bio-based feedstock."

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