Pantech C&I and KCA Partners have been selected as preferred bidders for the sale of SK TNS, an information and communications facilities and IT infrastructure company. Selecting multiple bidders as preferred counterparts is unusual and is effectively interpreted as an intent to conduct a progressive deal (to drive price competition and raise the sale price).
According to the investment banking (IB) industry on the 4th, Samil PwC, the sell-side advisor for SK TNS, notified the two acquisition candidates of their selection as preferred bidders. Pantech C&I formed a consortium with EGIS Investment Partners, and KCA Partners is also said to have teamed up with a strategic investor (SI) making a small equity contribution.
SK TNS is a company specializing in information and communications infrastructure construction, established in 2015 through a physical spin-off of the communications division of SK Construction, the predecessor of SK ecoplant. Private equity firm Alchemist Capital Partners Korea acquired 100% equity from SK ecoplant in 2021 for about 290 billion won.
In the market, the sale price of SK TNS had been mentioned as between the mid-300 billion won range and 400 billion won. According to the industry, KCA Partners is said to have offered the higher price of the two candidates.
As of the end of last year, Pantech C&I had 154.9 billion won in current assets on a consolidation basis, with consolidated revenue of 580.6 billion won and consolidated operating profit of 27.5 billion won last year. It is said to have secured a commitment from one financial institution to provide the funds needed for the acquisition.
KCA Partners is an institutional-only private equity firm established in 2019. It is led by CEO Kwon Il-hwan, formerly of McKinsey and Qualcomm Ventures. It has mainly invested in technology corporations such as Rebellions, SungEel HiTech, and ALMAC.