The acquisition battle for SK Square's music content subsidiary Dreamus Company has ultimately developed into a three-way competition. Initially, YG PLUS was considered a strong candidate for the acquisition but ultimately withdrew.
According to investment banking (IB) industry sources on the 29th, Daemyung GEC·JC Partners Consortium, Busan Equity Partners (EP), and Be My Friends made binding offers to the accounting firm Samil Accounting Corporation, the sale's advisor for Dreamus Company.
Earlier, at the end of last month, SK Square selected these candidates and YG PLUS as joint preferred negotiators (preferred). However, it had a stronger character of a preliminary bidding than a typical preferred negotiator process, primarily due to SK Square's internal circumstances that required completing the selection of preferred negotiators by the third week of July.
Daemyung GEC, which specializes in electrical construction and firefighting facilities, is reported to have entered this acquisition battle while exploring entry into the platform business. JC Partners, which recently successfully sold its stake in Air Premia, has teamed up with Daemyung GEC as a financial investor (FI).
Busan EP has a history of engaging in M&A transactions with SK Square. In May, it acquired the corporate driving service company "Good Service" from SK Square's subsidiary T Map Mobility. Additionally, it is known to be in discussions to acquire an airport limousine from T Map Mobility.
Be My Friends stands out from the other three candidates due to its long-standing strong intention to acquire. The company is co-led by Lee Ki-young, who previously worked at Dreamus Company.
Currently, Dreamus Company's market capitalization is about 140 billion won. If SK Square sells only its 38.67% stake while applying a 100% management premium, the estimated sale price would be around 100 billion won; however, the second-largest shareholder, Shinhan Venture Investment (23.49%), also wishes to sell its stake. Shinhan Venture Investment has tag-along rights regarding SK Square, meaning it has the right to demand that its shares be sold when SK Square sells its stake.
The selling side plans to select a "true" preferred negotiator and notify the results as early as the first week of September.