With the sale of aerospace parts maker Yulgok underway, five asset managers are understood to have joined the main bidding.
According to the investment banking (IB) industry on the 29th, SamilPwC, the sale manager for Yulgok, conducted the main bidding for Yulgok through the afternoon that day. Five domestic and foreign private equity fund (PEF) managers — VIG Partners, KCGI, Anchor Equity Partners, Premier Partners, and STIC Investments — were said to have participated.
The assets for sale are a 47.09% equity stake in Yulgok held by the JKL Partners–WJ Private Equity consortium. The enterprise value is expected to be set at around 400 billion won on a 100% equity basis. However, as the manager SamilPwC is receiving proposals divided into two price cases depending on a scenario of winning a new project, the final sale price is likely to vary based on whether the project is won.
Yulgok is an aircraft fuselage and engine parts manufacturer founded in 1990. The JKL Partners–WJ Private Equity consortium became the second-largest shareholder after acquiring part of the existing shares in 2019 and purchasing 40 billion won in convertible preferred shares (CPS) in 2020. The current largest shareholder is CEO Wi Ho-cheol with a 47.23% stake, and the consortium holds 47.09%, including preferred shares. It is said that it has not yet been decided whether part of Wi's holdings will be included in the sale.
Yulgok has production bases in Changwon, Sacheon, Sancheong, and Jongpo, and has strengths in machining parts and wing structure manufacturing and assembly. As a partner of Korea Aerospace Industries (KAI), it is also known to supply products to global parts companies connected to the Boeing and Airbus supply chains. Last year's sales were about 117.4 billion won, and operating profit was 14.6 billion won.