이 기사는 2021년 04월 16일 06:05 thebell 에 표출된 기사입니다.

The sale of South Korea’s largest face masks manufacturer, Welkeeps, has halted due to a valuation gap between the seller and potential buyers.

Wellkeeps has decided to stop its sale of a controlling stake owned by chief executive Park Jong-han, industry sources said on Wednesday.

The seller received letters of intent from prospective buyers last year and mulled whether it should select its preferred bidder at the end of the year. However, it is said that the seller and candidates failed to narrow the valuation gap as the seller wants to be valued at around 250 billion won ($223 million).

Industry insiders believe the company cancelled its sale process and will decide whether to restart the process after this year’s financial results are released. It seems to be a move to dispel market concerns over whether Welkeeps will be able to maintain its stable performance even after the pandemic ends.

Some market insiders said the company may choose to list its shares instead of selling its controlling stake, but chances are slim given its peer company’s sluggish stock price.

The suspended sale of the largest mask maker is likely to have an impact on the possible sale of its smaller rivals. Multiple mask manufacturers are now on the market.

Founded in 2010, Welkeeps specializes in face masks that are designed to protect from fine dust and splash contamination. Welkeeps also operates an original equipment manufacturing business. The company has rights to import and sell U.S. manufacturer GOJO’s hand sanitizer Purell in South Korea.

Welkeeps recorded revenue of 143.8 billion won and operating profit of 40.7 billion won in 2020, a seven-fold increase and a 15-fold increase, respectively, from a year ago. (Reporting by Ar-rum Rho)