PE consortium-Yulkok transaction goes smoothly JKL Partners-WJ PE consortium could buy additional equity securities to boost the stake
Translated by Ryu Ho-joung 공개 2020-02-28 08:00:33
이 기사는 2020년 02월 28일 08:00 thebell 에 표출된 기사입니다.
South Korean PE firms JKL Partners and WJ Private Equity are on the course to complete the transaction to acquire a partial stake in Yulkok, the country's largest aerospace and defense spare part supplier.A consortium of the two firms signed an agreement last December to buy convertible preferred stock issued by Yulkok in a deal that could have valued the company at hundreds of billions of won. The transaction, worth about 40 billion won, is expected to close as early as the beginning of March, sources close to the deal said on Monday. The percentage of the stake acquisition has not been disclosed.
JKL Partners and WJ Private Equity plan to jointly form a special purpose company, which will pay the purchase price for the shares. JKL Partners plans to use its fourth fund to finance the purchase. Meanwhile, WJ Private Equity, a new PE firm, is currently working on raising capital for a project-specific fund, through which it will deploy more than 20 billion won to invest in the company.
There is still a possibility that the consortium could buy additional equity securities to increase the investment amount up to 100 billion won. But, in any case, Yulkok’s chief executive will likely remain to be the largest shareholder in the company.
“Things appear to be going smoothly in terms of funding and due diligence,” an industry insider said. “The possibility also remains that the transaction amount could become larger than initially reported.”
Yulkok generated revenue of nearly 77 billion won and EBIT of 9.2 billion won for 12 months ended December 31, 2019. During this year, the company is expected to continue its growth run, with revenue expected to exceed 100 billion won and EBITDA to grow to 23 billion won.
Last year, several domestic PE firms including IMM Investment made pre-IPO investments – worth a combined more than 20 billion won – in the company’s rival Kencoa Aerospace Corporation, which is planning to list on Kosdaq next month.
In 2018, Yulkok also hired Daishin Securities to prepare for an initial public offering (IPO), but delayed its IPO plan after receiving a qualified audit opinion from its auditor.
Yulkok plans to use the proceeds from the transaction to boost capital expenditure and improve financial soundness.
(By reporter Choi Ik-hwan)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [IPO 기업 데드라인 점검]SSG닷컴, 풋옵션 숙제 풀었지만 '여전히 갈길 멀다'
- [thebell desk]'용감한' 카카오
- [엔비디아 밸류체인 파트너]'AI 붐'에 매출 오른 아이크래프, 단골 잡기 전략
- [노바렉스를 움직이는 사람들]정판영 연구개발총괄, '원료 강자' 만드는 브레인
- [금융지주 해외은행 실적 점검]숨고른 하나은행 인니법인, '디지털' 내세워 재도약 채비
- [2금융권 연체 리스크]삼성카드, 내실경영 전략 효과…잠재 부실 대응은 과제
- [금융지주 해외은행 실적 점검]전북은행 PCCB, 지방금융 '글로벌 1위' 입지 강화
- [보험사 IFRS17 조기도입 명암]코리안리, 호재 된 IFRS17…킥스비율도 안정적
- [KB캐피탈 인수 10년]성장동력 무게추 '자동차금융'서 '기업·투자금융' 이동
- [보험사 IFRS17 조기도입 명암]DB손보, 새 제도서 자본력 강화 비결은