This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:56 p.m. on Apr. 07, 2026.
The acquisition of Nexflex by the domestic private equity fund (PEF) manager Busan Equity Partners (Busan EP) has effectively fallen through. Busan EP secured exclusive negotiating rights after presenting MBK Partners with an acquisition price of about 850 billion won, but the deal has run aground from the very first step—selecting an arranger for the acquisition financing. The sell-side is marketing to potential bidders while planning to grant due diligence opportunities to some of them.
According to the investment banking (IB) industry on the 7th, Busan EP had been negotiating with multiple financial institutions to arrange acquisition financing for Nexflex, but all talks recently collapsed. After negotiations with Mirae Asset Securities fell through, discussions with KB Securities also halted last month after failing to clear the investment review committee. Meritz Securities is likewise understood to have dropped the deal during its internal working-level review. The firm has now submitted documents to Korea Development Bank (KDB) Capital and is in talks, but the deal is seen as unlikely to close.
Busan EP had reviewed a structure to finance roughly half of the approximately 850 billion won acquisition price through acquisition financing. While the market initially expected fierce competition among financial institutions given the large size of the funding, the opposite happened as major players pulled out one after another. An industry official said, "With the institutions capable of bearing the funding size needed for this acquisition having stopped negotiations, it will not be easy to bring in additional acquisition financing," adding, "In the end, the structure makes it difficult for the deal itself to be consummated."
The market views Busan EP's limited track record and lack of experience in executing large transactions as decisive factors. In particular, amid today's heightened financial market volatility, arrangers of acquisition financing are said to be assessing managers' credibility and history of closing deals more strictly. The fact that even senior loans—which carry less risk than equity investments—are not getting done is fueling the view that funding conditions for this deal are challenging.
Some also raise suspicions that the governance structure is opaque. Busan EP was rumored to be affiliated with BNK Financial Group, but that was not true. A BNK Financial Group official said, "Busan Bank invested in Busan Ventures (the parent company of Busan EP) as part of efforts to revitalize the region, but it holds less than a 10% stake and is only the fourth-largest shareholder." There are also accounts that among those tied to Busan EP is a figure who has long been active in the KOSDAQ mergers and acquisitions (M&A) market.
Nexflex is said to be drawing continued interest from financial investors (FIs) at home and abroad. Accordingly, the sell-side is reviewing a plan to selectively grant due diligence opportunities to multiple potential investors. With Busan EP's exclusive negotiation period already expired, MBK Partners, the seller, is in a position to give new bidders a chance to conduct due diligence. An industry official said, "Given the high asset attractiveness, we are seeing moves to request due diligence preemptively and push the deal on a sole basis rather than through an open competition," adding, "Global PEs active mainly in North America and Asia are making contact."
Nexflex, a manufacturer of flexible copper-clad laminate (FCCL) for smartphones, is highly rated for having secured a supply chain centered on premium smartphones. Analysts say it focuses on producing high-quality FCCL used in high-end smartphones, giving it a structure with strong profitability. Buoyed by robust global smartphone sales lately, its results have improved, and its expanded production capacity (CAPA) since the MBK Partners acquisition is said to have quickly reached the upper end of utilization.
Global PEs in particular are said to be interested from a growth potential perspective. FCCL is an electronic component material where signal transmission is key, and analysts see a high likelihood that its applications will expand with the spread of the Robotics industry. Because it can be used in areas like robot joints that require high-speed signal transmission, medium- to long-term demand is expected to increase.