POONGSAN Group is seeking to acquire Jack Nicklaus Golf Club (GC) in Songdo, Incheon. POSCO Group, which owns Jack Nicklaus GC, had said publicly that it had no plan to sell, but is understood to have come to the negotiating table after Poongsan showed interest.
On the 13th, according to the investment bank (IB) industry, POONGSAN Group is pushing to acquire Jack Nicklaus GC in partnership with a domestic advisory firm.
Jack Nicklaus GC is a prestigious 18-hole members-only course. It is well known as a place designed directly by the U.S. golf "legend" Jack Nicklaus. POSCO Group's real estate management company POSCO WIDE (formerly POSCO O&M) acquired it in 2022 and still holds it. The transaction price at the time exceeded 16 billion won per hole.
The market sees the sale price of Jack Nicklaus GC potentially rising to the mid-300 billion won range. However, the actual cash POSCO Group would obtain after the sale is estimated to be in the low-100 billion won range. That is because POSCO Group originally acquired it by adding 70 billion won in cash to a 235 billion won membership deposit liability. If Jack Nicklaus GC is assumed to be sold for 350 billion won, POSCO Group is expected to secure just over 100 billion won in funds.
According to the industry, Ryu Jin, chairman of POONGSAN Group, is said to be strongly committed to acquiring Jack Nicklaus GC. Ryu is reportedly actually leading the Jack Nicklaus GC operations committee. The operations committee of a members-only golf course serves as a channel to consult with the course on members' rights and interests and operational issues.
However, a POONGSAN Group official said, "We have not pursued an acquisition of Jack Nicklaus GC."