이 기사는 2020년 01월 28일 08:00 thebell 에 표출된 기사입니다.

South Korea’s IMM Investment is set to buy Dreamline Corporation from Korea Investment Private Equity (KI PE), highlighting a strong business relationship between the two private equity firms.

KI PE plans to sell its controlling stake in Dreamline, the communications service company it acquired in 2014, to IMM Investment. The two parties is expected to sign an agreement soon. The planned sale would represent KI PE’s first buyout exit since the private equity firm – formerly known as EQ Partners – became an affiliate of Korea Investment Holdings in 2017.

The planned deal is seen to a win-win for both firms: KI PE is expected to make an internal rate of return of more than 20 percent, while IMM Investment can expand its exposure to the communications sector with Dreamline’s internet data centers.

IMM Investment currently holds a 49 percent stake in Dreamline’s subsidiary, Dreammark 1, which it purchased for about 25 billion won ($21 million) last October. It was the first time that Dreammark 1 raised money from an outside investor, as the company has continued to receive financing support from its parent company since its foundation in 2016. Last year, Dreamline executed a debt-for-equity swap worth 16 billion won ($13.7 million) to reduce Dreammark 1’s high debt burden.

The acquisition of a majority stake in Dreamline has allowed IMM Investment to control Dreammark 1 too. “Internet data centers, Dreamline’s main business segment, require a significant investment in infrastructure,” said an industry insider. “IMM Investment could consider selling its 49 percent stake in Dreammark 1 to secure sufficient funds.”

IMM Investment and KI PE also teamed up with each other in 2019. They served as co-general partners when a SK Group-led consortium invested in Vingroup, Vietnam’s largest conglomerate.

Such a move seemingly has been driven by their common goal of expanding their business in Southeast Asia. KI PE is also expecting synergy with Korea Investment & Securities – another affiliate of Korea Investment Holdings – which created its Vietnamese entity, KIS Vietnam Securities Corporation, in 2010. Its local network and knowledge could be beneficial for KI PE.

“As far as I know, KI PE is paying close attention to the auto-part industry. KI PE is expected to pursue a strategy of investing in a local auto-part company with poor financial health to help it grow in the Southeast Asia market,” said an industry insider. “Seeking a partnership with the Vingroup’s auto brand VinFast is also possible,” he added.

In 2018, IMM Investment and KI PE also served as co-general partners for a project-specific fund that invested in aircraft leasing firm Crianza Aviation.

(By reporter Kim Byung-yoon)