The sale bidding for the Aekyung Group's Chungbu Country Club (CC) was a success. The sale price is expected to exceed 200 billion won. The average price per hole is likely to surpass 11 billion won. The Aekyung Group is reported to plan to sign a sales contract (SPA) by the end of June.
According to investment banking (IB) industry sources on the 12th, multiple bidders submitted letters of intent (LOC) during the main bidding conducted by Samjeong KPMG until the afternoon of that day.
Samjeong KPMG previously conducted a preliminary bidding last month. The main bidding on that day was held for bidders who participated in the preliminary bidding. There are no financial investors (FIs) involved; all are reported to be strategic investors (SIs). Some major securities firms have been actively recruiting SIs early on.
Industry insiders expect the sale price to far exceed 200 billion won. Each hole is projected to sell for around 10 billion won, totaling 180 billion won, with the land likely to be sold for more than 20 billion won.
The Aekyung Group aims to select a preferred bidder soon and complete the SPA by the end of June. They intend to quickly finalize the sale of Chungbu CC and proceed with the sale of Aekyung Industrial. The expected sale price for Aekyung Industrial is reported to be 600 billion won.
Since Aekyung Chemical holds 100% of the equity in Chungbu CC, the Aekyung Group is expected to channel the proceeds from the sale of Chungbu CC to AK Holdings. There is a possibility that Aekyung Chemical will purchase convertible bonds from AK Holdings or lend funds to AK Holdings.
Chungbu CC is an 18-hole membership golf course located in Gwangju, Gyeonggi Province. It has the geographical advantage of being close to Seoul and is in proximity to prestigious courses such as East Valley CC, Namchon CC, Lexfield CC, and Gonjiam CC.