The private equity arm of Korean equities research house KTB Investment & Securities has partnered with Woongjin Holdings Co to buy a minority stake in water purification business Woongjin Coway.
Woongjin Holdings, the parent company, opted to team up with KTB Private Equity to buy the 31 per cent interest after putting the stake up for sale earlier this year.
The pair has formed a special purpose vehicle to acquire the stake, which is valued at KRW758bn ($660m) at Tuesday’s market close, into which the pair will pump around KRW600bn in equity and KRW600bn in debt.
KTB Private Equity has agreed to invest 60 per cent of the remaining KRW600bn, while Woongjin Group will stump up the remaining 40 per cent to retain control of Woongjin Coway.
Woongjin Group will also have pre-emptive buying rights to KTB Private Equity’s interest should the buyout firm decide to sell its stake in 2016.
Asian buyout houses Affinity Equity Partners and MBK Partners were among a host of potential bidders said to be lining up for the stake, as was GS Retail.
Goldman Sachs is handling the sale.
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