This article was published on the ChosunBiz MoneyMove (MM) site at 4:52 p.m. on Nov. 5, 2025.
Shinhan Precision Industry, an auto parts maker undergoing corporate rehabilitation proceedings, will be sold to domestic private equity firm Opus Private Equity (PE) and NH Investment & Securities PE unit (NH PE). The deal is drawing attention because it was completed while many corporations such as Homeplus Co., Jeongyukkak, Watcha and Interpark Commerce were being shunned in the merger and acquisition (M&A) market before confirmation of rehabilitation plans.
On Nov. 5, investment banking (IB) industry and legal sources said the Opus–NH PE consortium signed an investment agreement with Shinhan Precision Industry and finalized acquisition of management control. At a creditors' meeting held recently at the Daejeon District Court, a rehabilitation plan that included the transaction price and repayment plan was approved, bringing the deal close to closing.
The total transaction amount is 43 billion won. The Opus–NH PE consortium will acquire 21.5 billion won in new shares issued by Shinhan Precision Industry through a third-party allotment paid-in capital increase and 21.5 billion won in corporate bonds. Shinhan Precision Industry will use 42.3539 billion won of the sale proceeds, after deducting the sell-side adviser fee (501.6 million won) and the administrator's remuneration (144.5 million won), to repay rehabilitation secured claims and rehabilitation claims.
Opus–NH PE plans to control Shinhan Precision Industry through a special purpose company (SPC), Shinhan Precision Holdings. Once the transaction is completed, Shinhan Precision Holdings will hold 100% of Shinhan Precision Industry's equity. The existing largest shareholder TSA Investment (99%) and Oh Jin-seok's (1%) stakes will be fully cancelled without compensation.
Last year in the second half, Opus–NH PE acquired 26 billion won worth of nonperforming loans (NPLs) of Shinhan Precision Industry, which was undergoing corporate rehabilitation proceedings. They financed it with an existing blind fund, "NH Opus No. 3 corporate financial stabilization institution-only." It was intended to secure creditor status and obtain voting rights at the creditors' meeting.
Shinhan Precision Industry is a parts maker that produces precision shafts for automobiles. It entered Korea's automotive motor parts market in earnest in 1992 by domesticating automotive shafts previously imported from Japan. At the time it grew by making vendors that supplied motor products to Hyundai Motor and Kia its main clients.
However, sales plunged during the COVID-19 pandemic, resulting in large losses. Restructuring at major clients, a downturn in the auto industry, rising labor and raw material costs and other reasons worsened its financial condition. Even after the transition to endemic, its financial structure deteriorated, and it entered corporate rehabilitation early last year. As of the end of last year, sales were 19.4 billion won and operating loss was 11.7 billion won.