This article was published on Jan. 23, 2025, at 1:38 p.m. on the ChosunBiz MoneyMove site.
Multiple private equity fund managers are pursuing an investment of 200 billion won in GS Entec. GS Entec is a company that leads the plant and energy businesses within GS Group. In line with the group's eco-friendly future business strategy, it has been seeking to transition from a manufacturer of chemical equipment for refining and petrochemical plants to a provider of offshore wind structures.
According to investment banking industry sources on the 23rd, multiple asset managers are in the process of securing funding for investment in GS Entec. Among them, asset manager A has made a follow-up investment in GS Entec after investing 25.7 billion won in 2023. At that time, Dominus Investment also invested 64.3 billion won. It is also known that GS Global, which is the largest shareholder of GS Entec, participated as a subordinate investor in the project fund they established.
GS Entec plans to utilize the funds raised this time for equipment expansion in preparation for overseas orders. However, the initial plan for an initial public offering in 2026 appears to be somewhat delayed. GS Entec stipulated that it must apply for preliminary review for listing on the Korea Exchange by the end of December 2026 when it secured investment in 2023. If this condition is not met, investors are known to have a drag-along right to sell the shares of the largest shareholder.
A GS official noted, "It is true that we are pursuing funding, but we cannot disclose the investment purpose or scale, and our listing plan remains unchanged."
Asset manager A was established in 2014. The total assets under management (AUM) are at around 500 billion won. Asset manager B, which is pushing for investment with Company A, was founded in 2018 to strengthen its alternative investment sector.
Another GS official explained that while discussions are ongoing with Companies A and B, it is also possible to secure investment from other sources.
GS Entec is in the process of transitioning to a global provider of offshore wind foundations. In July of last year, it also announced a large-scale investment plan. At that time, GS Entec stated that it would invest a total of 300 billion won—214 billion won in automation equipment for the production of offshore wind foundations and 86 billion won in other constructions—over the next two years.
In the same year, GS Entec signed a technology licensing exclusive contract with Sif, a Dutch company and a global leader in the production of offshore wind foundations known as monopiles. Monopiles are the main structures that support offshore wind turbines from the seabed, welded together from large steel plates in a cylindrical shape, acting as a cornerstone for turbine installation.
GS Entec has previously attempted an initial public offering (IPO) but faced failure. It secured investments in 2011 and 2013 with the condition of conducting an IPO between 2015 and 2017, but failed to list due to poor performance. As a result, financial investors exercised their right of early redemption for the equity they held. GS Global, the parent company, spent over 120 billion won on repaying the investment.