This article was published on March 21, 2025, at 5:02 p.m. on the ChosunBiz MoneyMove site.
LG Uplus and Daou Technology have emerged as strong candidates for the acquisition of REVU Corporation, a KOSDAQ-listed company known for its influencer marketing platform "REVU." In particular, it has been identified that LG Uplus possesses a priority right of first refusal ahead of Daou Technology as the second-largest shareholder of REVU Corporation.
According to investment banking (IB) sources on the 21st, Kiwoom Private Equity (Kiwoom PE) and Korea Investment Partners Private Equity Division (HanTou PE) have recently formalized the management rights equity sale procedure for REVU Corporation against LG Uplus and Daou Technology. The advisory firm selected for the sale is the accounting and consulting firm EY HanYoung.
Kiwoom PE and HanTou PE are reportedly tentatively pricing the desired sale amount by adding the scope of the target shares and the management rights premium, planning to make acquisition offers to LG Uplus and Daou Technology respectively. A transaction closing by the end of the year is the goal, with the estimated sale price at around 100 billion won.
It is understood that LG Uplus participated as a strategic investor (SI) in March 2022, acquiring a 68.26% stake in REVU Corporation from the private equity fund (PEF) operator bnw investment, thus obtaining the right of first refusal. At that time, it invested approximately 7.2 billion won to secure a 10% stake.
The right of first refusal for LG Uplus is crucial as it requires Kiwoom PE and HanTou PE to first offer shares for sale that are full or involve the transfer of management rights to LG Uplus. Although there was a clause stating that it would expire during an initial public offering (IPO), LG Uplus maintained its holding shares. This indicates that there has been a continuous willingness to acquire.
Currently, Kiwoom PE and HanTou PE hold 56.91% of REVU Corporation through a special purpose corporation (SPC), while LG Uplus holds 8.34%. Some of the equity was diluted when it was listed on the KOSDAQ market in October 2023. Daou Technology participated as an investor in the SPC and holds a subordinated right of first refusal.
The market sees a high possibility of LG Uplus acquiring REVU Corporation. Starting as a marketing company that recommends optimized influencers for advertisers to conduct campaigns, it has recently expanded its business area to include short-form (short videos). LG Uplus is currently engaged in marketing collaboration with REVU Corporation. (Related article☞[Exclusive] REVU pushes for acquisition of short-form marketing company... HanTou and Kiwoom PE raising valuations)
Performance has also been steadily improving. Sales, which were at 31.5 billion won in 2022, increased by 26% to 39.7 billion won in the first year after listing in 2023, and rose by another 23% to 48.9 billion won last year. The operating profit for last year was 4.1 billion won, which is a 14% increase compared to 3.6 billion won in 2023.
If Kiwoom PE and HanTou PE sell their management rights equity in REVU Corporation for 100 billion won, they are expected to achieve a 100% return on their investment principal. An IB industry source noted that "since Daou Technology also holds a right of first refusal in addition to LG Uplus, the likelihood of a successful transaction is high."