This article was published on the ChosunBiz MoneyMove (MM) site at 2:41 p.m. on Sept. 16, 2025.
Singapore investment firm CBC Group is reportedly attempting to replace shareholders while pursuing the sale of management rights to medical aesthetic corporation HUGEL. It is looking for a private equity (PE) firm to buy half of the company's equity after pushing out other major shareholders besides itself. The plan appears to be that CBC and the new PE would each hold 50% of the company's equity, then voluntarily delist to begin the sale in earnest.
However, existing shareholders are said to have no intention of selling their equity and leaving. Even if they change their minds and decide to sell, industry sources view the likelihood of that happening as very low.
On the 16th, investment banking (IB) industry sources said CBC recently proposed the acquisition of HUGEL equity to multiple global PE firms. The proposal was to acquire the old shares held by other shareholders besides itself and to publicly tender for shares circulating in the market.
Earlier, in 2021 CBC Group, GS, IMM Investment, and Abu Dhabi's sovereign wealth fund Mubadala formed a consortium and acquired about 47% of HUGEL's equity for 1.7 trillion won. That equity ratio included common stock and convertible bonds.
Among the consortium-held equity, CBC's stake is reported to be about 14%. The remaining 33% is held jointly by GS, IMM Investment, Mubadala and others.
CBC is said to hope that a third PE will emerge to acquire the other shareholders' 33% equity and publicly tender for about 46% of minority shareholders' equity. However, CBC plans to participate in the public tender as well, and through this aims for a final structure in which CBC and the third PE each hold 50% of HUGEL's equity and voluntarily delist.
This appears to have several objectives. First, CBC intends to push out other shareholders such as GS to take the lead in the sale. CBC is also reported to want to secure a high corporate valuation through voluntary delisting without being constrained by the market price.
HUGEL's current market capitalization is about 3.8 trillion won. The share price is in the low 300,000-won range per share, only about 7% higher than the CBC consortium's investment price (280,000 won). CBC wants recognition of a price in the mid-400,000-won range per share at minimum, but the market price is low, so its valuation expectations are likely out of step with potential buyers.
The problem is that CBC is reportedly seeking new shareholders without obtaining the consent of the remaining shareholders. Industry sources say GS, IMM Investment and Mubadala have no intention of selling their equity and exiting.
Even if other shareholders wanted to exit (recover their investment) this time, the market believes it would be difficult to realize. Other shareholders are likely to expect a price in the 500,000-won range, about double the investment price, and the question is which PE would pay such a high premium without fully securing management control.
Assuming a share price of 500,000 won per share, acquiring the GS, IMM Investment and Mubadala stakes and completing a public tender to hold 50% of HUGEL would require an estimated fund of more than 3 trillion won. If a public tender were initiated, the share price would likely rise further, so the actual funds deployed are expected to far exceed 3 trillion won.
CBC's reluctance to give up leadership in the deal is also a factor reducing the likelihood of success. CBC is said to have excluded mega-size fund managers such as Carlyle and KKR and sent proposals to smaller-scale managers instead.