Goldman grabs slice of Korean gas producer for $400m alongside co-investor


steam boiler_lrgGoldman Sachs’ private equity arm has reportedly led a consortium to buy a $400m stake in South Korean gas production major Daesung Industrial Gases.

The buyout arm has teamed up with a fund owned by former C&M CO chairman Lee Min-Joo to buy about 68 per cent of the business according to the WSJ, which cited a person familiar with the deal.

Daesung’s industrial gas business produces oxygen and nitrogen for products including semiconductors, electronics and steel, and serves customers such as Samsung Electronics and LG Display.

WSJ said DIG’s parent company Daesung Group was trying to raise capital to pay back loans in property development.

Daesung will have the option of buying back the gas producer in four years time at an agreed-upon valuation, the report added.

Last week Goldman Sachs’ private equity arm re-upped its investment in Indian renewable energy company ReNew Power Ventures by committing $70m.

Goldman had previously committed $250m to ReNew since 2011, with its total equity investment in the company now at $390m.

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