Morgan Stanley in control deal for Korean paper maker
Morgan Stanley Private Equity Asia (MSPEA) has agreed to buy a majority stake in South Korean bathroom tissue producer Monalisa for KRW91.4 billion ($84.2 million). The seller is Kwang-ho Kim, the company’s CEO, who will also exit two unlisted entities to the private equity firm.
According to a regulatory filing, MSPEA will buy 24.1 million shares in Monalisa for KRW3,785 apiece, taking the 66% interest held by Kim and his affiliates. The unlisted entities are Monalisa Daejeon and Ssangyong C&B, both of which Kim owns in full.
Korea Exchange-listed Monalisa's stock is currently trading at a five-month high of KRW4,600, having jumped more than 20% since the MSPEA investment was announced.
Established in 1977, the company produces hygiene paper such as toilet paper, diapers and cosmetic tissues. Its brands include Bellagio, Premium Nox, Good Morning and Thank Q.
While industry leader Yuhan Kimberly started out as a joint venture with US-based Kimberly-Clark, Monalisa was founded by local entrepreneur Ja-seop Byeon. In 1996, Byeon sold the management rights to Shinho Group, which was later acquired by P&Tec Group. In 1999, Monalisa entered court receivership, exiting legal management three years later when Kim assumed ownership.
This is MSPEA's second investment in the Korean paper sector. In 2008, it acquired Jeonju Paper, a manufacturer of newsprint and specialized paper products, in conjunction with domestic GP Shinhan Private Equity.
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