This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:33 p.m. on July 22, 2026.
With domestic private equity fund (PEF) manager VIG Partners selected as the preferred bidder for aircraft parts maker Yulgok, the firm is moving to revise the deal structure it initially favored—acquiring 100% equity—to a plan that leaves some equity held by CEO Wi Ho-cheol. Change-of-control (CoC) conditions in contracts Yulgok has with key counterparties are cited as the reason for the transaction structure change.
According to the investment banking (IB) industry on the 22nd, VIG Partners was selected the previous day as the preferred bidder for the sale of Yulgok. When VIG Partners submitted its main bid for the sale, it reviewed both acquiring 100% equity including CEO Wi's holdings and acquiring while leaving those holdings in place. VIG Partners preferred the structure of acquiring 100% equity and proposed it to the seller, but it is said to have changed the transaction structure to leave Wi's equity in place during negotiations over detailed terms.
The backdrop to the change in the transaction structure is understood to be CoC clauses included in contracts Yulgok has signed with clients and major counterparties. CoC clauses require obtaining prior consent from the counterparty when the company's controlling shareholder or management control changes, or allow the counterparty to terminate or renegotiate the contract.
If all of Yulgok's equity shifts to VIG Partners, it may be difficult to meet the change-of-control conditions set in some contracts. In response, the acquisition structure was designed to have Wi retain a certain portion of equity, and it is said the parties discussed ways to maintain existing contracts with major customers.
Aircraft parts makers often sign long-term supply contracts with a small number of large clients, so whether contracts with clients are maintained directly affects corporate value. If key supply contracts are terminated or become subject to renegotiation during the acquisition, revenue stability and backlog could be undermined. VIG Partners also appears to have prioritized ensuring business continuity after the acquisition.
Qualitative factors are said to have played a decisive role in the selection of the preferred bidder. Although VIG Partners did not offer the highest acquisition price, it reportedly persuaded the seller by emphasizing synergies it can create in connection with Eastar Jet Co., acquired in 2023, and its post-acquisition strategy.
In addition, its successful track record, including a bolt-on strategy at funeral service provider Preedlife, appears to have added credibility.
However, the plan to leave Wi's equity has not been finalized. The transaction structure could change again during future negotiations. Specifics such as the remaining equity ratio and how Wi will participate in management are said to be under discussion with the seller.