This article was published on July 4, 2025, at 5:17 p.m. on the ChosunBiz MoneyMove site.
The preliminary bidding for Koentec, a waste incineration company with a corporate value of about 1 trillion won, was a success. The sellers are expected to select eligible candidates and notify them as early as the 7th.
According to the investment banking (IB) industry on the 4th, UBS and EY Han Young, the lead managers for the sale of Koentec, conducted preliminary bidding for potential buyers on the 27th of last month.
As a result, it has been confirmed that 5 to 6 companies submitted letters of intent (LOI) for acquisition. Among them, 2 are strategic investors (SI) and the rest are financial investors (FI).
Koentec is a waste management company that specializes in intermediate waste disposal and final waste disposal, acquired by a consortium of IS Dongseo and E&F Private Equity (PE) through a special purpose corporation (SPC) called E&I Holdings in 2020.
It has the largest facilities in the country capable of incinerating 463 tons of industrial waste per day. Last year's revenue was 80.5 billion won, and operating profit was 30.5 billion won. The target for sale is the entire equity stake held by the consortium in Koentec.
According to the industry, the sellers previously signed non-disclosure agreements (NDA) with 14 preliminary buyers and delivered investment memorandums (IM) in early last month.
The consortium originally considered selling Koentec along with another portfolio company, Corentech, and KR Energy in a bulk sale but ultimately decided to sell Koentec first.
If all three companies had been sold together, the total corporate value would have reached 2 trillion won, limiting potential acquirers. However, by opting to sell only Koentec separately, it is interpreted that more candidates could be considered.
An IB industry official noted, 'The fact that Koentec covers waste incineration, steam production and sales using waste incineration heat, and waste landfill also contributed to its successful bidding.'
The consortium plans to complete the sale of Koentec within this year and subsequently sell Corentech and KR Energy. Koentec must be sold this year if the fund's maturity is not extended, while there is a two-and-a-half-year leeway for Corentech. The expected selling price for Corentech is also anticipated to be similar to that of Koentec, around 1 trillion won.