이 기사는 2020년 01월 17일 08:00 thebell 에 표출된 기사입니다.

South Korea's limited Partners (LPs) are flocking to a project fund formed by Macquarie Korea Opportunities Investment (Macquarie PE) to acquire a 35 percent stake in LG CNS. LPs who are willing to commit to the fund are expecting synergies with Macquarie Group, a global financial group based in Sydney.

According to industry sources on January 14, Macquarie PE is currently raising money for the project fund to acquire a minority stake in LG CNS, an information and communications technology solutions affiliate of LG Group. Thus far, financial institutions including mutual aids, securities firms, and banks have committed more than 350 billion won in aggregate.

The PE firm will pay around 951.6 billion won for a 35 percent stake in LG CNS, of which 350 billion won will be raised through the project fund. Of the remaining 600 billion won, around 150 billion won will be financed by Macquarie PE’s blind-pool fund. This will make an equity commitment of approximately 500 billion won. The PE firm will use acquisition financing for the remaining amount. Samsung Securities, KB Kookmin Bank, KB Securities, and Korea Investment Securities are arranging the acquisition financing.

There have been mixed opinions about LG CNS among financial backers so far. Some institutional investors, who consider cash flow important during the investment period, have been negative about the investment. “LG CNS’ equity tranche will pay a dividend income of around two percent. Normally mutual aids prefer a five percent level,” said an institutional investor.

However, thanks to interests from securities firms and banks, the project fund reportedly exceeded fundraising target already. When the PE firm first planned its deal structure, it expected that acquisition financing may account for 70 percent, but with the fund gaining popularity in the market, the amount of equity investment has increased. LPs who have decided to commit to the fund appreciate LG CNS’ growth potential and future expandability.

LG CNS provides system integration services and IT solutions to enterprise customers. It has a stable revenue base, with sales from transactions with its affiliates, including LG Electronics and LG Uplus, accounting for more than 60 percent of the company’s 2018 revenue. Partnership with Macquarie PE is part of efforts by the company to find future growth engines. “The demand for IT services from LG Group is high, which heightens expectations for [LG CNS’] sales growth,” said a financial institution official.

There are expectations for generating synergies with Macquarie PE becoming the second-largest shareholder of LG CNS. LG CNS is particularly focusing on areas like smart cities, smart factories and renewable energy infrastructure, seeking to make headway into overseas markets. These are exactly the specialized areas of Macquarie PE, which is working on integrating next generation technologies – such as AI, 5G and IoT – into its portfolio companies, raising the expectation of synergy between the two parties.

Sydney-based Macquarie Group is the world-renowned energy and infrastructure fund, which owns U.K.-based broadband provider KCOM, integrated chemical site operator Currenta in its portfolio. The group manages assets worth 500 trillion won in 33 countries around the world.

(By reporters Kim Hye-ran and Jo Se-hun)