이 기사는 2021년 12월 28일 08시08분 thebell에 표출된 기사입니다

Glenwood Private Equity is in advanced talks to sell Hankuk Glass Industries, a South Korean glass manufacturer known for its brand Hanglas, with the potential sale expected to significantly boost the return of the private equity firm’s fund.

The Seoul-based private equity firm signed a memorandum of understanding on Friday to enter exclusive talks with LX International Corp to sell a 100% stake in the glass maker, according to industry sources.

LX International will conduct due diligence in the coming weeks, with a definitive share purchase agreement expected to be signed in the first quarter of 2022.

The sale is expected to be worth about 600 billion won ($505.8 million), which represent nearly twice what Glenwood PE paid for the glass producer two years ago.

The private equity firm bought 100% of Hankuk Glass Industries from French glass manufacturer Saint-Gobain in December 2019 for 310 billion won, alongside about 50 billion won in convertible bonds issued by the company.

Approximately 100 billion won of the acquisition cost was invested from Glenwood PE’s first blind-pool fund – which closed at 450 billion won in 2018 – and 200 billion won from a dedicated vehicle. The remaining 60 billion won was funded through debt financing.

Other investments made via the private equity firm’s first blind-pool fund include regional gas suppliers Haeyang Energy and Seorabeol City, polyimide film producer PI Advanced Materials and beauty retailer CJ Olive Young.

Glenwood PE exited Haeyang Energy and Seorabeol City earlier this year by selling its stakes in the two companies to Macquarie Korea Asset Management for about 798 billion won, pushing up the fund’s internal rate of return to 32%. The sale of Hankuk Glass Industries is expected to further increase the fund’s IRR.

The National Pension Service and the Korean Teachers' Credit Union are among major investors in the blind-pool fund. The Korean Federation of Community Credit Cooperatives is the anchor investor in the firm’s vehicle dedicated to investing in Hankuk Glass Industries. (Reporting by Gyoung-tae Kim)