이 기사는 2021년 05월 27일 07:36 thebell 에 표출된 기사입니다.

South Korea’s tractor maker Kukje Machinery received preliminary offers from two strategic investors, with the final bidding expected to take place in mid-June, industry sources said.

Some financial investors that initially showed interest in the company pulled out, reducing competition among bidders. The price tag for the company is estimated to be between 60 billion won and 70 billion won ($63 million).

United Asset Management Company (UAMCO) and Keystone Private Equity, which together hold a majority stake in the company, gave the bidders access to the virtual data room to start the due diligence process. They are expected to receive final offers as early as the middle of next month.

Kukje Machinery holds the fourth largest share in the domestic agricultural machinery market. It was offloaded by Dongkuk Steel in 2016 as part of restructuring efforts by the steel maker. A consortium consisting of UAMCO, Keystone Private Equity and rival tractor maker TYM Corp bought the company for 58 billion won.

The company has continued to grow in the past four years. Its revenue rose from 198.4 billion won in 2016 to 290 billion won in 2020. Operating income quadrupled to 10 billion won in the same period.

TYM had a call option that gives the company a right to buy shares in Kukje Machinery from the other two investors. But TYM decided not to exercise it in August last year, leading them to embark on the sale process.

Kukje Machinery’s strong growth in overseas markets is likely to attract potential buyers. The company’s revenue generated from North America has grown at an annual rate of 30% in recent years. The company also benefited from the pandemic-induced demand, with its first-quarter revenue rising 50% year-on-year. (Reporting by Se-hun Jo)