TAE KWANG CORPORATION has entered the acquisition battle for Aekyung Industrial. This is interpreted as an effort to expand into the consumer goods sector as the oil and chemical industry, which is its main business, faces worsening conditions.
TAE KWANG CORPORATION and the group's private equity fund management company TAE KWANG PRIVATE EQUITY (PE), along with Yuanta Investment, formed the "TAE KWANG PRIVATE EQUITY Consortium" and submitted a formal bid proposal on the 22nd.
The sellers selected three preliminary candidates (shortlist) during the preliminary bidding stage last month, including the TAE KWANG PRIVATE EQUITY Consortium and Anchor Equity Partners and Paul Capital Korea.
Aekyung Group is working to sell 63.38% of the equity in Aekyung Industrial, held by its holding company AK Holdings and Aekyung Asset Management. The expected selling price in the market is around 600 billion won.
Taekwang Industrial is attempting to restructure its business portfolio centered on textiles and petrochemicals. On the 1st of last month, it unveiled an "investment roadmap" that plans to invest about 1.5 trillion won this year and next year. It envisions allocating funds for acquisitions related to cosmetics, energy, and real estate businesses.