Domestic private equity fund (PEF) managers Woori PE Asset Management and Bailey Private Equity (hereinafter the Woori–Bailey PE consortium) will acquire Hyundai Steel's forging business subsidiary, Hyundai IFC.
According to the investment banking (IB) industry on the 10th, Hyundai Steel selected the Woori–Bailey PE consortium as the preferred bidder to acquire its subsidiary Hyundai IFC. The consortium is expected to acquire 80% equity in Hyundai IFC, while Hyundai Steel will retain the remaining 20%. The acquisition price is said to be around 300 billion won.
Hyundai IFC is a 100% subsidiary of Hyundai Steel and a shipbuilding forging manufacturer. In the main bid held on 14th, the Woori PE–Bailey PE consortium participated along with Mirae Asset Securities and Pine Tree Investment & Management.
The Woori–Bailey PE consortium is said to have offered a price similar to that of Mirae Asset Securities, a strong contender. However, it reportedly won the deal by presenting plans to strengthen competitiveness through expanding production capacity and broadening the business portfolio.
It is also reported to have guaranteed job security and the succession of working conditions. It gained an advantage on the financing front as well. While Mirae Asset Securities would have had to raise a project fund on its own, Woori PE can use a blind fund and, together with Bailey PE, raise a project fund, leading to assessments that financing would be easier.