이 기사는 2021년 06월 25일 08:10 thebell 에 표출된 기사입니다.

US private equity firm Carlyle Group is emerging as the frontrunner to acquire South Korean automotive supplier Hanon Systems, controlled by Seoul-based private equity firm Hahn & Company, in what could be the biggest deal in the country’s mergers and acquisitions market.

Global investment firms Carlyle and Bain Capital and industry players including France's Valeo and Germany's Mahle submitted offers in the first round of bidding on Tuesday, industry sources said.

Prior to the bidding, other potential buyers including South Korean conglomerates LG and Halla, Germany’s Continental and private equity firms KKR and TPG are said to have showed interest in the company and received an information memorandum from deal advisers Morgan Stanley and Evercore.

Carlyle is considered the frontrunner in the race. Unlike previous investment targets pursued by the US firm in South Korea, the plan to acquire Hanon Systems took a nod from its global investment committee. The vibe is different compared to the past, industry watchers said.

Carlyle was the first foreign private equity firm that invested in South Korea. But its presence in the country has become smaller in recent years, with no buyout deals involving the firm since its 2014 takeover of ADT Caps. Carlyle sold the security company to a consortium led by SK Telecom in 2018, generating a 900 billion won ($791.3 million) profit.

In 2019, the US firm appointed John Kim as a managing director of its Asian buyout team. Before joining Carlyle, Kim spent 20 years at Goldman Sachs where he latterly served as head of M&A for Asia ex-Japan. He filled the position of head of Carlyle’s South Korean team – which had been vacant for a year – raising expectations that the firm will become active again in the country’s M&A market.

In recent years, Carlyle has expanded its exposure to the country with minority stake acquisitions. It bought 240 billion won in exchangeable bonds issued by KB Financial Group in June 2020, and invested 200 billion won in Kakao Mobility earlier this year.

Carlyle has also focused on buyout opportunities, but no deals were agreed. Most recently the firm had been in talks to acquire CJ’s bakery chain Tous Les Jours, but ultimately decided to pull out.

Hanon Systems, which is the second largest player in the global market for vehicle thermal management by market share, is estimated to be worth as much as 8 trillion won. Carlyle seems very serious about acquiring the company, industry watchers said. Goldman Sachs and Credit Suisse are advising Carlyle. US law firm Latham & Watkins and South Korean law firm Lee & Ko are acting as legal advisers.

Carlyle reportedly approached several industry players, including LG Group, to team up to bid for Hanon Systems. But it ultimately submitted a bid on its own, indicating its strong financial capability and deep knowledge in the sector.

A total of a 69.9% stake in the company – 50.5% held by Hahn & Co and 19.49% held by Hankook Tire Technology – are up for sale. Hanon Systems had a market capitalization of roughly 9 trillion won as of the close on Tuesday.

Price negotiations will be key to the success of the sale, industry watchers said. The seller is reportedly seeking a significant control premium, while the bidders are preparing for thorough due diligence.

“Carlyle is considered the frontrunner in the race to acquire Hanon Systems in terms of capability and the level of interest,” said an industry insider. “A tug-of-war between Carlyle and the seller to get the upper hand in negotiations will be interesting to watch.” (Reporting by Hee-yeon Han)