This article was displayed on the ChosunBiz MoneyMove (MM) site at 6:08 p.m. on Jun. 24, 2026.
Crescendo Equity Partners (Crescendo PE) has restarted the process to sell control of KOSPI-listed Dong-Ah Geological Engineering. The firm paused a previous attempt last year over differences on valuation, but with recent earnings improving, it appears to be seeking buyers again.
According to the investment banking (IB) industry on the 24th, Dong-Ah Geological Engineering's sale manager KB Securities recently distributed an information memorandum (teaser letter) to domestic and overseas private equity fund (PEF) managers and strategic investors (SI) and began contacting potential bidders. The stake for sale is 34.23% equity in Dong-Ah Geological Engineering held by Crescendo PE through the special purpose company (SPC) Dover Holdings.
Earlier, Crescendo PE began the sale of Dong-Ah Geological Engineering's management control in May last year. At the time, Crescendo PE was said to have valued 100% equity in Dong-Ah Geological Engineering at the mid-300 billion won level. But buyers found it burdensome, and the two sides failed to bridge the price gap.
Back then, amid a domestic construction downturn and a contraction in the mergers and acquisitions (M&A) market for listed companies, some said Dong-Ah Geological Engineering's growth potential was not fully recognized. In particular, with overall investment sentiment in construction depressed, there reportedly was a significant gap between the seller's expected valuation and the market's assessment.
Since then, improving results have changed the mood. On a consolidation basis last year, Dong-Ah Geological Engineering posted revenue of 467.7 billion won, operating profit of 18.1 billion won, and net profit of 18.7 billion won. In the first quarter this year, it recorded revenue of 123.8 billion won, operating profit of 5.1 billion won, and net profit of 4.2 billion won. Year over year, revenue rose 19.2%, operating profit 43.6%, and net profit 47.9%.
Observers say visibility on future performance has also improved. As of the first quarter this year, the order backlog was about 797.1 billion won, equal to 1.7 times last year's annual revenue. It means the secured workload alone can generate stable revenue for years.
The business portfolio is also favorable to changes in market conditions. Dong-Ah Geological Engineering focuses on specialized civil engineering such as TBM (mechanized tunnel excavation) and DCM (deep mixing method). In Korea, it is involved in power tunnels, railways, and underground infrastructure construction, while overseas it is carrying out urban railway and infrastructure projects mainly in Singapore and the Philippines.
With the spread of artificial intelligence (AI) data centers driving more investment in transmission networks and national grid projects, and with growing investment in urban railways, metropolitan transit networks, and offshore wind, demand for related work types is expanding. Areas where Dong-Ah Geological Engineering is strong—power tunnels, tunnels, and ground improvement—are seen as major beneficiaries.
Its overseas business share is also high. As of the first quarter this year, overseas sales accounted for 62.7%, reducing exposure to fluctuations in the domestic construction market. Its accumulated construction track record and references in Southeast Asian markets, including Singapore, are also viewed as strengths.
The market sees Crescendo PE returning to an exit process as concerns about Dong-Ah Geological Engineering's growth potential and earnings stability have eased considerably. An industry official said, "Unlike last year, the environment now allows future growth potential to be reflected," adding, "It is being viewed positively that the company has strengths in areas where structural investment expansion is expected, such as power grids, railways, and underground infrastructure."
Crescendo PE acquired Dong-Ah Geological Engineering through SPC Dover Holdings established in 2019. It bought 2.24 million existing shares held by founder Chairman Lee Hae-kwon's side for about 40.4 billion won and acquired 40 billion won each of convertible bonds (CB) and bonds with warrants (BW), totaling 40 billion won. Total investment was about 80.4 billion won.
In 2022, it converted both the CB and BW into common shares, completing the current equity structure. The purchase price for existing shares is estimated at about 18,000 won per share, and the CB/BW conversion price at about 21,000 won per share.
Dong-Ah Geological Engineering's market capitalization is 212.9 billion won based on the closing price that day. The seller is said to be seeking a valuation in the 300 billion won range, reflecting a control premium, a stable overseas business base, and future growth potential.