PE firms bid for Korean weapons manufacturer – report
Four private equity firms and a European defense company have reportedly submitted bids for a stake in South Korea’s LIG Nex1. The weapons manufacturer is offloading a 49% interest worth around $440 million.
A preferred bidder will be chosen by the end of this week or early next week. According to Reuters, IMM, Actium and STIC Investments are among the PE investors keen on the asset. At least one party put in an offer that included conditions relating to a possible IPO by LIG Nex1. Citigroup is managing the deal.
LIG Nex1 is owned by LIG Corp, which is part of the LIG Group, one of a number of Korean chaebols 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.
It produces anti-submarine and cruise missiles as well as weapons systems. The company posted an operating profit of KRW30.3 billion ($26.6 million) in 2011, down from KRW42 billion in 2010.
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