Korea's CJ withdraws from bidding for MBK-controlled Coway

CJ, which revealed in October that it was involved in preliminary bidding for the asset, gave no reason for the decision not to proceed, according to a regulatory filing. Previous reports suggested that MBK's 31% stake could sell for upwards of KRW2 trillion ($1.7 billion). Several other parties, including PE firms, have also been linked to the deal.

The private equity firm acquired the position from bankrupt Woongjin Holdings in January 2013 for KRW1.2 trillion. As of year-end 2014, other significant shareholders in the listed business included Lazard Asset Management, Korea's National Pension Service, the Saudi Arabia Monetary Agency, and Singapore's GIC Private, with approximately 16.5% between them.

Founded in 1989, Coway is the dominant player in Korea's health appliance industry, selling air and water purifiers, bidets, water softeners, food waste disposal systems and mattresses. This accounts for 86% of the company's revenue, principally through rental and maintenance services. Coway also sells appliances overseas and has relatively small interests in cosmetics and industrial water treatment.

Revenue came to KRW2.01 trillion in 2014, up from KRW1.81 trillion in 2012, prior to MBK's ownership. Operating profit rose from KRW255.2 billion in 2012 to KRW377.5 billion in 2014 while net income went from KRW167.4 billion to KRW273.6 billion, although these figures exclude one-off gains and costs such as divestments and impairment charges.

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• Topics
• Exits
• North Asia
• Industrials
• South Korea
• Exit
• Trade sale
• manufacturing
• MBK Partners