Korean private equity firm Hahn & Company has agreed to buy a 43.15 per cent stake in STX Corp affiliate STX Energy Co.
STX sold the assets to pay down debt according to Reuters, which said the company sold a 43.1 per cent stake in the energy business to Japan’s Orix Corp for $328m last year.
It said Orix had since upped its stake in the heating and power company to 50 per cent through exchangeable bonds.
STX Group chairman Kang Duk-soo intends to exercise a call option for a 6.9 per cent stake in STX Energy out of Orix’s holdings according to a Reuters source, which said the move would give Hahn voting rights and management control.
Earlier this year Hahn & Co picked up the insolvent cement business of Korea’s Daehan Group for $65m.
The firm, which spun out from Morgan Stanley Private Equity Asia in 2010, bought a 100 per cent equity stake in the business and put it in a position to pay off all its debt.
Daehan Cement had started formal rehabilitation proceedings in the Korean courts in May 2009 after its parent group expanded the business too far.
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