This article was displayed on the MoneyMove (MM) site of ChosunBiz at 10:46 a.m., Apr. 19, 2026.
The sale of management control of Dongmi Electric Industry, considered a small but strong player in power equipment, is entering a prolonged phase. Even as transformer companies enjoy an unprecedented boom on surging power demand driven by the spread of artificial intelligence (AI), talks suggest the gap remains wide between seller and bidders over a valuation said to be around 500 billion won.
According to the investment banking (IB) industry on the 19th, the sale process for Dongmi Electric Industry has shown no clear progress to date. Negotiations with bidders are ongoing, but the process has not advanced to selecting a preferred bidder. Some candidates reviewing an acquisition are also showing caution in making a final decision. Korea Investment & Securities Co.'s PE division, which initially considered a purchase, is now understood to have halted its review.
The transformer and power equipment industry to which Dongmi Electric Industry belongs is cited as a prime beneficiary of expanding global investment in power infrastructure. Growing power demand at data centers due to AI's spread, coupled with increased investment in transmission and distribution networks amid the transition to eco-friendly energy, is highlighting medium- to long-term growth.
While the business looks attractive in terms of market conditions and fundamentals, the actual transaction appears blocked by price. The seller is said to expect a high valuation reflecting industry growth and the potential for future revenue expansion, whereas bidders are reportedly offering more conservative prices in line with the current financial market environment.
Recently, the mergers and acquisitions (M&A) market has formed an overall "price discount" tone as rate burdens and weaker investor sentiment intersect. With acquisition financing expenses rising, it has become harder for financial investors (FI) to meet internal rate of return (IRR) thresholds, reducing aggressive bets compared with the past.
Focusing solely on transformer market conditions, some say the seller's target price is not entirely unrealistic. However, the view is that it is a difficult time to pay a high price by front-loading future growth. An industry official said, "An asset manager that initially considered creating a project fund with the Dongmi Electric Industry acquisition in mind has recently halted the review."
Participation by strategic investors (SI) that could expect synergies with the power equipment business is also a variable. If an SI takes an active role in the bidding, the price gap could narrow, but so far no clear "game changer" has emerged.
The industry believes a stalemate is likely to continue unless the seller partially adjusts expectations or a structure emerges in which an SI recognizes a premium. An industry official said, "Since the sale process began in earnest early this year, there has been no meaningful progress so far."