이 기사는 2020년 06월 26일 08:00 thebell 에 표출된 기사입니다.

South Korea’s WWG Asset Management has acquired the nation’s Semyoung Tech, which marks the firm’s first investment from its first blind-pool fund.

WWG has recently acquired a controlling stake in Semyoung Tech, according to sources on June 24. The asset management firm participated in the company’s rights offering and purchased a 70.5 percent of new shares for approximately 11 billion won ($9 million).

Existing shareholders of the waste management company will maintain their stake in the company after the buyout deal. Kim Dong-wook is the largest shareholder of the company with a 20.33 percent stake, followed by PSN Group holding an 8.73 percent stake, Lee Jae-sook with a 7.32 percent stake and chief executive Choi Seung-yong with a 1.54 percent stake, as of the end of first quarter.

“Semyoung Tech was seeking to raise external funds while WWG was looking for investment opportunities,” said an M&A industry.

Established in 1999, Semyoung Tech is a specialized manufacturer of phosphoric acid reclaimed from the spent etchant through the high purification process and other various inorganic chemical products such as acetic acid, monobasic ammonium phosphate, diammonium phosphate and sodium acetate in industry fields.

The company has generated annual sales of approximately 15 billion won thanks to stable demands from semiconductor, display and solar energy industries although its profitability and financial soundness aren’t impressive. Semyoung Tech has recorded losses since 2018 and posted an operating loss of 700 million won in the first quarter of this year. Total debt and net debt stand at 21.4 billion won and 21.3 billion won, respectively, as of the end of first quarter. Due to the increase in debt, the company’s financial cost has increased to 2 billion won in 2019 from 900 million won in 2017.

After the buyout deal, WWG plans to focus on the turnaround of the company. WWG is expected to use the latest investments to repay debt to improve Semyoung Tech’s financial structure. “Semyoung Tech’s financial structure has turned sour due to its recent overinvestment in facilities,” said a WWG official. “We plan to improve the company’s enterprise value by repaying debt and strengthening its sales capability.” The source added that the firm will find a new growth engine by drawing up a plan to utilize Semyoung Tech’s 43,000 square meters of land.

WWG has made the latest investment through its 43 billion won blind-pool fund launched last year. WWG was selected as an external manager for an investment program led by Korea Development Bank and Korea Growth Investment Corp. (K-Growth). Established in 2016, WWG has launched two project funds and one blind-pool fund.

WWG has acquired Hansung Cleantech and Woodang Technical Industry.

(Reporting by Byung-yoon Kim)