This article was displayed on the ChosunBiz MoneyMove (MM) site at 6:13 a.m. on May 15, 2026.
The sale of Seoul Electric Wire by private equity fund (PEF) managers Eugene Private Equity (Eugene PE) and Woori Private Equity (Woori PE) has hit a hot streak. The sale is being pursued about a year after acquisition, and thanks to strong momentum in the power infrastructure sector, more than about 10 corporations are said to be considering a bid.
According to the investment banking (IB) industry on the 15th, multiple letters of intent (LOIs) have been received for the sale of management control of Seoul Electric Wire being pursued by Eugene PE and Woori PE. Not only financial investors (FIs) such as PEF managers but also strategic investors (SIs) related to cable and energy infrastructure are said to have submitted LOIs.
The sale target is about 80% of the management-control equity in Seoul Electric Wire held by Eugene PE and Woori PE through special purpose company (SPC) Energy Link, with Samjong KPMG serving as the sell-side advisor. A person on the sell side said, "We can't disclose specific numbers, but investor interest is significant."
Founded in 1968, Seoul Electric Wire is regarded as a mid-sized cable maker ranking around seventh in Korea. Its main business is producing industrial cables used in solar power plants, wind farms, and nuclear power plants. Eugene PE and Woori PE formed a consortium in Mar. last year and acquired Seoul Electric Wire for about 150 billion won.
The boom in the power infrastructure sector appears to be translating into sale momentum. With rising investment in artificial intelligence (AI) data centers and expectations for expanding power infrastructure, the medium- to long-term growth potential of power infrastructure such as cables has come into focus. Moves by PEF managers to preempt assets in cables and power equipment are also a positive.
Earnings are also improving. On a consolidation basis, Seoul Electric Wire posted 302.1 billion won in revenue last year. That was an increase of more than 23% from 245.4 billion won a year earlier. Operating profit during the same period rose nearly 35% to 19.8 billion won from 14.7 billion won. Net profit came to around 17 billion won last year.
A sale price north of 300 billion won is being discussed. That implies a price-to-earnings ratio (PER) multiple of more than 22 times based on last year's net profit, and given the industry backdrop that the power infrastructure supercycle is at an early stage, IB circles inside and outside the industry say the level is acceptable.
In the industry, there is an expectation that Eugene PE and Woori PE will notch a so-called blockbuster exit if the sale is completed. The goal is to close the transaction by the end of this year. That would mean earning twice the invested principal in about two years since acquiring Seoul Electric Wire, with the internal rate of return (IRR) expected to reach 40%.
An IB industry source said, "Considering that the typical exit horizon for buyout funds is three to five years, this is an unusually rapid timeline," while adding, "Ahead of new fundraising to be carried out, they are pushing for a swift sale to showcase the Seoul Electric Wire exit performance to limited partners."