VIG secures 3.2x return on Korea's HiParking

The private equity firm expects to generate a 3.2x multiple on an investment it has held since April 2016. VIG paid KRW30 billion for an 83% stake in HiParking; it was the last investment from the firm’s second fund, which closed at $350 million in 2014. Early changes included the appointment of a new CEO and CFO.

HiParking was established in 1999 and claims to be the largest car park operator in Korea. It has a network of 300 lots and 100,000 bays, accommodating eight million vehicles a year. The company took a significant step-up in scale last year with the acquisition of Wilson Parking Korea, which had 70 lots. VIG contributed KRW35 billion in new equity.

KOSDAQ-listed Humax produces set-top boxes and digital video recorders. They accounted for 79% of its KRW734 billion in revenue last year. In 2017, the company moved into automotive electronics such as audio and navigation systems. HiParking will be merged with Carplat, Humax’s car-sharing platform, as part of a new division called Humax Mobility.

The acquisition, which is scheduled to close in late October, will be financed through a KRW95 billion capital injection in Humax Mobility by its parent company, according to a filing. In addition, STIC Investments will contribute KRW70 billion in equity and subscribe to KRW30 billion in convertible debentures.

“VIG was convinced that the parking management service will serve as a bedrock to the mobility platform services in the near future,” Chulmin Lee, a managing partner at VIG, said in a statement.

VIG is currently in the market with its fourth fund. A first close of $530 million came in May and the hard cap has been set at $850 million.

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• Topics
• North Asia
• Trade sale
• Real estate
• Infrastructure
• South Korea
• Transportation
• VIG Partners