이 기사는 2021년 05월 18일 07:47 thebell 에 표출된 기사입니다.

Dongbu nTECH, a wholly-owned subsidiary of South Korea’s construction company Donbu Corp, has joined the race for the country’s waste management company Clenko, formerly known as Jinju Industry.

Several potential buyers for Clenko have completed their detailed due diligence on the target and offered acquisition prices to the seller, Macquarie Korea Asset Management, industry sources said on Friday.

Founded in 1998 in Cheongju, North Chungcheong Province, Clenko handles general and construction waste, focusing on intermediate treatment of waste and steam production using waste heat.

The company recorded revenue of 41.4 billion won ($36 million) and an operating profit of 8.5 billion won, with earnings before interest, taxes, depreciation and amortization (EBITDA) of 17 billion won in 2020. Industry sources value of the company at an EBITDA multiple of 11~15 times based on its peers’ valuation and its market position. Based on its multiple, Clenko is expected to be sold for around 200 billion won.

Macquarie Korea Asset Management and its sale manager JP Morgan started the sale process in 2020. They received letters of intent from multiple prospective buyers and allowed some of them to conduct detailed due diligence on the target, with construction companies showing strong interests.

Industry sources have paid extra attention to Dongbu Corp, which acquired WIK Joongbu, WIK Gyeonggi, WIK Environment and Yongsin Environment Development from Macquarie Private Equity for 82 billion won in 2019. The construction company has partnered with Ecoprime PE to buy Clenko as it did for the acquisition of WIK and Yongsin.

Dongbu nTECH, the number two player in the public incineration sector, was separated from Dongbu Corp last year. It is said to have tried to make a foray into the private industrial waste treatment sector.

Dongbu nTECH is expected to create synergies with Clenko by incorporating know-hows in operation and management of incinerators. The company currently operates 10 facilities nationwide including household waste treatment facilities, sewage treatment plants, and renewable energy facilities.

Apart from its business competitiveness, Clenko’s valuation may be lowered due to ongoing lawsuits against the local government, industry sources said. (Reporting by Ar-rum Rho)