This article was posted on the ChosunBiz MoneyMove (MM) site at 3:10 p.m. on Nov. 17, 2025.
E&F Private Equity (PE) and IS Dongseo (IS Dongseo Co.) consortium decided to induce competition among bidders without selecting a preferred bidder in the sale of waste incineration company Koentec. With IMM Private Equity (PE) and Hong Kong-based Geo Capital Partners among two bidders showing purchase intent, the strategy is to raise the price as much as possible through so-called auction-style bidding.
According to the investment banking (IB) industry on the 17th, the E&F PE·IS Dongseo consortium is continuing individual negotiations with bidders who participated in Koentec's main sale bid. It is reported that they have a policy to sign a share purchase agreement (SPA) as soon as the sale side's desired price and deal conditions are met. The seller is in final negotiations with leading bidders IMM PE and Geo Capital Partners over the sale price and detailed conditions.
This deal is effectively proceeding as a progressive deal (auction-style bidding). The judgment was that selecting a single preferred bidder could weaken the seller's negotiating power. Bidders have submitted revised proposals several times until recently. However, IMM PE and Geo Capital Partners have offered similar prices, so neither has taken the lead. Because the seller's desired level has not been reached, the selection of the prospective buyer has been delayed.
E&F PE and IS Dongseo are known to hope for a sale price in the 800 billion won range. When the seller acquired Koentec's shares in 2020, it valued the company at 708.4 billion won. The acquisition price for 59.29% equity was 420 billion won. Later, when it conducted a tender offer for delisting and a comprehensive share exchange last year, it lowered the company valuation to about 450 billion won. Koentec's last-year revenue and operating profit were 80.5 billion won and 30.5 billion won, respectively. Cumulative revenue and operating profit through the third quarter this year were 55.8 billion won and 19.9 billion won, respectively.
E&F PE has been hesitating because of IS Dongseo. When Koentec was acquired, IS Dongseo participated as a subordinated investor. If a deal is concluded at the 600 billion won level offered by bidders, senior investors realizing returns first could result in IS Dongseo's returns falling short of expectations. Although E&F PE has the practical decision-making authority over Koentec's sale, it appears to be deeply considering the situation of IS Dongseo, a major limited partner (LP).
An industry source said, "I understand that the two parties currently competing to acquire Koentec have offered similar price conditions," and added, "In this situation, selecting one as the preferred bidder would upset the balance, so they are negotiating with both sides and are expected to choose one and sign the contract immediately."