This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:10 p.m. on Sep. 17, 2025.
UAMCO has begun full-fledged cash recovery from portfolio corporations. The liquidation period for the blind fund used to acquire the equity at the time is approaching, and with corporate value rising after turning profitable, it appears they judged now to be the right time to sell.
According to the investment banking (IB) industry on the 17th, UAMCO and domestic private equity firm Pinewood PE are promoting the sale of Dynamec's controlling equity. They recently selected a domestic accounting firm as the sell-side advisor and are receiving letters of intent (LOI).
The sale method is stalking horse bidding. A stalking horse selects a preliminary preferred bidder, signs a conditional investment agreement, and then seeks acquirers offering better terms through a public competitive bidding process. It is commonly used in corporate rehabilitation proceedings to enhance transaction certainty.
Founded in 1977, Dynamec manufactures electronic parts for automobiles such as brake pistons and powertrains. It expanded its operations by securing customers that include automakers Hyundai Motor and Kia as well as global corporations such as BMW, Volkswagen and Volvo.
However, poor performance in the U.S. and Chinese markets, China's retaliation over the Terminal High Altitude Area Defense (THAAD) and negative factors such as GM Korea's closure of its Gunsan plant compounded, and results began to deteriorate. As Dynamec's order volumes continued to shrink, sales, which had hovered around 120 billion won, fell and the company turned to a loss in 2018, eventually filing for corporate rehabilitation at the Seoul Bankruptcy Court.
UAMCO and Pine Tree PE formed a consortium and acquired Dynamec in 2019. Dynamec's largest shareholder is DY Metal Holdings, which holds 100% of the company's equity. DY Metal Holdings is a special purpose company established by UAMCO and Pinewood PE.
Dynamec's performance has been steadily on the rise. In 2018, the year it entered corporate rehabilitation, sales were 103.2 billion won and operating loss was 6.6 billion won. Operating losses continued through 2020, but the company returned to profit in 2021. Last year, operating profit was 3.7 billion won.
UAMCO also put up for sale 100% of its stake in Sail Electronics held through UAMCO Rebound 2nd Corporate Financial Stability Private Equity Fund. Six years earlier, UAMCO acquired control of Sail Electronics, which had been undergoing corporate rehabilitation due to deteriorating liquidity from falling sales.
Sail Electronics is a mainboard printed circuit board (PCB) manufacturer. It focuses on producing electronic control units such as engine control units (ECU), powertrain control units (PCU) and airbag control units (ACU). It also makes PCBs for 5G communication equipment and defense industry applications, such as smartphones and laptops.
Before being acquired by UAMCO, Sail Electronics recorded operating losses of 22.7 billion won and 10.2 billion won in 2018 and 2019, respectively. It steadily reduced the loss margin afterward and returned to profit with 2.2 billion won in operating profit in 2023.
Meanwhile, UAMCO is steadily selling off portions of its equity in STX Engine. From last September to the present, it sold 8.2 million shares via block deals, recovering 196.8 billion won. It appears to be proactively reducing its stake ahead of a sale of the controlling interest.
The UAMCO·KHI consortium is also pursuing the sale of K Shipbuilding (formerly STX Offshore & Shipbuilding). They plan to distribute teaser letters to potential bidders this month and begin the full process. It has been four years since they acquired the controlling equity for 250 billion won in 2021.