IS Dongseo, E&F PE to create fund for Koentec purchase Consortium to form SPV with equity contribution of 300 billion won
Translated by Ryu Ho-joung 공개 2020-06-10 08:00:40
이 기사는 2020년 06월 10일 08:00 thebell 에 표출된 기사입니다.
IS Dongseo and E&F Private Equity (E&F PE) plan to create a jointly managed fund to buy stakes in waste management companies from Macquarie Korea Opportunities Management (Macquarie PE), sources said on June 8.Macquarie PE agreed on June 4 to sell its 59 percent stake in Korea Environment Technology (Koentec) and 100 percent stake in Saehan Environment to a consortium of IS Dongseo and E&F PE for about 500 billion won ($417 million). The consortium plans to fund the acquisition with about 200 billion won in debt and the remainder in equity.
Two financiers – KB Securities and Korea Development Bank – will arrange loans for the acquisition. For the equity investment, IS Dongseo and E&F PE will jointly launch a 300 billion won project fund that will invest in a special purpose vehicle established to purchase the stakes.
IS Dongseo, a construction company, will invest 100 billion in the fund. E&F PE plans to raise the remaining 200 billion won, the majority of which is being underwritten by KB Securities.
The brokerage firm will soon likely reach out to investors to sell down the equity interest. As Koentec is considered to have a stable business model and a strong ability to generate cash flow, the sell down process will attract sufficient interest, industry watchers said. Waste companies are becoming more popular in the mergers and acquisitions market because the sector is less cyclical than average and the demand for industrial waste management continues to rise.
Koentec counts large companies such as SKC and SK Energy among its customers, with an average contract life of 11 years. The company is also one of a handful of domestic waste processors with a vertically integrated business portfolio that includes landfill and incineration.
As the sole landfill operator in Ulsan, Koentec last year obtained approval to develop a new landfill in the region. It is expected to enter operation in 2021 and contribute to an increase in revenue thereafter.
(Reporting by Hye-ran Kim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 마창민 대표도 떠난다, 조직 전면 쇄신
- [DL이앤씨 인사 격변]인적분할 4년차, '가이던스 달성 실패' 후폭풍 거셌다
- [DL이앤씨 인사 격변]CFO도 퇴출, 후임자 내외부 물색
- [DL이앤씨 인사 격변]감원 칼바람, 임원 10명 중 3명 짐 쌌다
- CJ올리브영, 글랜우드PE와 결별 '이사회 재정비'
- [코스닥 주총 돋보기]'상폐 위기' 엠벤처투자, 주주 해명 '안간힘'
- FI 지분 되사온 CJ올리브영, ‘승계 플랜’ 본격 가동하나
- 에스텍파마, 폴라리스AI파마로 '새 출발'
- 나무가, '공정 자동화 전문가' 이동호 대표이사 선임
- CJ그룹, 글랜우드PE에 판 CJ올리브영 지분 되사온다