이 기사는 2021년 04월 30일 07:56 thebell 에 표출된 기사입니다.

DS Networks, one of the major South Korean developers, has teamed with investment firms SkyLake Equity Partners and IPM Group to buy Daewoo Engineering & Construction (Daewoo E&C) in its second attempt to acquire the company.

The consortium is working with Morgan Stanley to prepare a bid for a 50.75% stake in Daewoo E&C owned by KDB Investment, industry sources said.

DS Networks reportedly approached the two investment firms about a partnership. “DS Networks is showing strong interest in acquiring Daewoo E&C. This is its second acquisition attempt after the first one four years ago,” said an industry insider.

In 2017, the developer had teamed up with a Chinese construction company to join other bidders in an auction for Daewoo E&C. Hoban Construction had won the bidding war, but it ultimately called off the acquisition due to concerns about losses and contingent liabilities related to Daewoo E&C’s overseas projects.

SkyLake Equity Partners’ capability to raise capital have attracted DS Networks to work with the firm, industry watchers said. The Seoul-based firm last year closed its new blind-pool fund at 750 billion won ($677 million). It also recently completed the 1 trillion won acquisition of Solus Advanced Materials, formerly known as Doosan Solus, in partnership with strategic investors Lotte and LG.

London-headquartered IPM Group specializes in energy and infrastructure investments. Its expertise in infrastructure and plants could help Daewoo E&C grow its core businesses, industry watchers said.

Founded in 2014, IPM Group has offices in San Francisco, Hong Kong and Seoul apart from the UK. Its notable deals include buying a $900 million stake in a liquefied natural gas terminal in Dunkirk, France, in partnership with South Korean investors including Samsung Securities in 2018.

DS Networks reportedly has deep understanding of Daewoo E&C’s business and culture as the companies have worked together several times.

“DS Networks has a friendly relationship with Daewoo E&C’s management,” said another industry insider. “I heard DS Networks had been considering recruiting staff from Daewoo E&C when it had attempted to acquire Doosan E&C last year.”

A consortium led by DS Networks participated in the bidding process for Doosan E&C last year but eventually pulled out. (Reporting by Byung-yoon Kim)