This article was published on Mar. 26, 2025, at 5:16 p.m. on the ChosunBiz MoneyMove site.
UAMCO is retrying the sale of Plant Tech, a specialized engineering company in the steel and logistics institutional sector. At the end of last year, UAMCO selected a sales advisor and commenced formal sale procedures. However, after proceeding with preliminary bidding and failing to find a suitable buyer, it decided to reinitiate the sale after the annual results were compiled.
According to the investment banking (IB) industry on the 26th, UAMCO has selected EY Hanyoung as the sales advisor for Plant Tech and has begun the formal sale procedures. The advisor is distributing a summary investment memorandum and confidentiality agreement to interested buyers and is currently conducting preliminary bidding. Plans are in place to receive preliminary bidding proposals by the 28th, followed by due diligence and the main bidding process, to select a preferred negotiating party.
Plant Tech's predecessor was Seongjin Geotech, established in 1989 as a maintenance subsidiary of Pohang Iron and Steel Works. Seongjin Geotech, listed in the securities market in 2007, was acquired by POSCO three years later and merged into POSCO Plantech. However, following the acquisition by the POSCO Group, losses continued, leading to a complete capital erosion and the refusal of auditor opinions, resulting in delisting from the securities market in 2016.
Subsequently, the bondholders, organized around KDB Industrial Bank, entered into joint management (workout) and initiated the sale of management rights. UAMCO gained a competitive edge in Plant Tech's public bidding, acquiring a 71.93% stake for about 60 billion won in May 2020. With the acquisition funds injected by UAMCO, Plant Tech repaid its debt and has since operated without borrowing, quickly recovering. As of last September, Plant Tech's revenue, operating profit, and net profit were 417 billion won, 19.1 billion won, and 26.1 billion won, respectively.
Accordingly, UAMCO planned to recoup funds through Plant Tech's initial public offering (IPO). However, after a failed attempt to re-enter the stock market seven years post-delisting in 2016 due to the excessively high revenue proportion from POSCO, Plant Tech's exit strategy shifted to selling management rights. The sale target includes the 120 million shares (71.93%) of Plant Tech held by UAMCO's 'Corporate Rebound 10th Corporate Financial Stability Private Equity Partnership.' Currently, it is known that domestic strategic investors (SIs) are showing interest.
Contrary to initial reports, POSCO Group, the second-largest shareholder of Plant Tech, will exit the sale process while maintaining its equity. POSCO Holdings and POSCO Construction hold 10.99% and 2.37% of Plant Tech's equity, respectively. An industry insider noted, "This sale target is the equity held by UAMCO," adding that "POSCO Group does not plan to sell its stake in Plant Tech." The equity value of Plant Tech, as assessed by an external accounting firm commissioned by POSCO Holdings, is estimated at around 31 billion won, with the total enterprise value reaching 300 billion won.
With POSCO Group deciding to retain its equity in Plant Tech, the growth trend of its performance is expected to continue. About 90% of Plant Tech's total revenue comes from POSCO. As of last September, the captive revenue from POSCO Group was around 400 billion won. However, recent projects, including the expansion of baggage handling facilities at Incheon International Airport Corporation and construction of a conveyor belt system at Doosan Enerbility's Samcheok plant, are aimed at reducing reliance on POSCO.
A variable in this sale process is the minority shareholders, who hold 24,529,946 shares (14.70%). Minority shareholders have previously filed lawsuits in court when Plant Tech carried out paid-in capital increases during UAMCO's acquisition of management rights in 2020. Although the lawsuit was withdrawn during the process of reinitiating the listing of Plant Tech, the possibility of backlash cannot be dismissed now that they feel excluded from the management rights sale.