Korea’s Woongjin, KTB Private Equity in $1b Coway deal
KTB Private Equity, an affiliate of South Korean financial services company KTB Investment & Securities, will team up with Woongjin Holdings to buy a 31% stake in water purifier manufacturer Coway for KRW1.2 trillion ($1 billion). The target company is a subsidiary of Woongjin and was put up for sale earlier this year.
According to a stock exchange filing, the two parties signed a memorandum of understanding on July 24. Goldman Sachs helped arrange the transaction, having previously been hired to review the sale options for Korea Exchange-listed Coway.
At the time of the announcement, the Coway stake was worth KRW758 billion. KTB Private Equity and Woongjin will make the investment via a special purpose vehicle that will receive about KRW1.2 trillion in capital, half of it in debt. KTB has agreed to put in 60% of the remaining KRW600 million, with Woongjin contributing 40% and retaining management control.
Woongjin first expressed an interest in selling the Coway holding in February, saying the proceeds would help fund its move into solar energy. It has invested heavily in subsidiaries Woongjin Energy and Woongjin Polysilicon in the last year.
MBK Partners, Affinity Equity Partners and Lotte Shopping were all linked to the asset. Coway's product range includes air purifiers, water filtration devices, digital bidets and megasonic cleaning devices.
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