Taekwang Group has reportedly emerged as a leading candidate for the acquisition of Aekyung Industrial.
According to investment banking (IB) industry sources on the 7th, a consortium consisting of Taekwang Industrial, T2 Private Equity (PE), and Yuanta Investment has been selected as the preferred bidder for the management rights of Aekyung Industrial. The sale is being handled by Samjong KPMG.
The sale involves approximately 63% of the equity in Aekyung Industrial held by AK Holdings. As of 5th, the market capitalization of Aekyung Industrial was 429.4 billion won. Considering the management rights premium, the total corporate value is reported to be around 600 billion won, with the acquisition price discussed to be in the 400 billion won range.
Amid deteriorating conditions in its core petrochemical business, Taekwang Industrial has shown movement to expand its profile into the lifestyle and consumer goods sectors. It is interpreted that the entry into the Aekyung Industrial acquisition race is aimed at diversifying its business areas to include cosmetics and household products.
Taekwang Industrial unveiled an 'investment roadmap' worth approximately 1.5 trillion won in July, aiming for business restructuring over the next two years. The plan is to inject funds into acquisitions related to cosmetics, energy, and real estate.