STIC-led consortium finalizes LIG Nex1 deal
A group of Korean investors led by STIC Investments has agreed to buy a 49% stake in LIG Nex1, a domestic aerospace and defense company owned by LIG Group. The sale price is said to be KRW420 billion ($388 million).
The group, comprising STIC, KTB Private Equity, KB Asset Management, Hana Daetoo Securities, Dongbu Securities, AJU IB Investment, Daishin Securities and Heungkuk Asset Management, was selected as the preferred bidder in August. Four local private equity firms and a listed European defense company also bid for the asset.
The deal requires that LIG Nex1 launches an IPO by the second half of 2016. If this fails to happen, the company can buy the 49% back from the investors at a set price or the investors could seize control of the business.
LIG Nex1 produces anti-submarine and cruise missiles as well as weapons systems. Its parent, LIG Group, is one of a number of Korean conglomerates looking to divest assets in order to service debts or boost capital for their core businesses. LIG Engineering & Construction filed for court receivership last year.
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