This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:40 p.m. on Sep. 29, 2025.
A large-scale investment in Cosmo Group is confirmed to be in its final stages. Domestic private equity firm SG Private Equity is the investor. SG PE will inject 340 billion won using blind funds, project funds and acquisition financing.
After this investment is completed, Cosmo & Company, the holding company of Cosmo Group, will convert into a pure holding company. It will transfer its domestic distribution business through a business transfer. COSMO AM&T plans to raise additional funds by pursuing a third-party allotment rights offering.
On the 29th, investment banking industry sources said Cosmo & Company and listed company COSMO AM&T are each planning to issue convertible bonds of 220 billion won and 120 billion won, respectively.
The 220 billion won convertible bonds to be issued by Cosmo & Company will have a coupon rate of 2.0% per year and a yield to maturity of about 8.0% per year. COSMO AM&T's coupon rate was set at 1.2% per year and its yield to maturity at 3.0% per year. The maturity of the convertible bonds is five years from the issue date.
SG PE established a special purpose company, C&C Turnaround LLC, to invest in Cosmo Group. It has so far completed a first-round investment of 52.85 billion won in Cosmo & Company through its blind fund. It will add 137.15 billion won through a project fund.
A total of 165 billion won will be raised through acquisition financing. A term loan of 150 billion won will be invested in Cosmo & Company and COSMO AM&T, and a revolving credit facility (RCF) of 15 billion won will be used for financial expense. Shinyoung Securities, which was selected as the lead arranger for the acquisition financing, is gathering financial investors.
SG PE's investment in Cosmo Group amounts to 355 billion won. Accordingly, the company provided high-quality assets as collateral. These include a first-priority pledge on 100% of Cosmo & Company shares held by controlling shareholder Huh Kyung-soo, a first-priority pledge on COSMO Chemical shares worth about 140 billion won, and disposal restriction rights on shares of Cosmo Robotics, which is currently preparing for an initial public offering.
After this fundraising is completed, Cosmo & Company will convert into a pure holding company. It was confirmed that it will transfer the domestic distribution business of U.S. home appliance brand SharkNinja, a major source of revenue, to a related party company, D2S1 Partners. The sales of that business segment as of the end of last year were 133.7 billion won.
D2S1 Partners is a management consulting service company whose shares are owned 60% by Huh Seon-hong, the eldest son of Cosmo Group chairman Huh Kyung-soo, 20% by eldest daughter Huh Soo-yeon and 20% by second daughter Huh Ji-yeon. It is expected to import SharkNinja products through its subsidiary, freight carrier Joyang Logistics International.
COSMO AM&T will also pursue a third-party allotment rights offering targeting Cosmo & Company. Cosmo & Company will use 125 billion won of the 220 billion won to repay borrowings, 15 billion won for working capital, and participate in COSMO AM&T's rights offering to acquire common shares worth 80 billion won to strengthen its control.
COSMO AM&T, which was incorporated into Cosmo Group in 2010, manufactures and sells functional films, cathode active materials for secondary batteries, toners and magnetic materials for toners. The largest shareholder is COSMO Chemical, which holds 27.19% equity. The ownership structure runs from Huh Kyung-soo, chairman of Cosmo Group → Cosmo & Company → COSMO Chemical → COSMO AM&T.