The takeover battle for Haitai htb, well known as the maker of "Podo Bong Bong" and "Coco Palm," has solidified into a contest between a strategic investor (SI) and a financial investor (FI). MGC Global, operator of the low-priced coffee franchise Mega Coffee, and the fledgling private equity firm Godo Partners were shortlisted as qualified bidders.
On the 10th, according to the investment banking (IB) industry, LG H&H, together with Samjong KPMG, selected MGC Global and Godo Partners as qualified bidders for Haitai htb. As the sell-side advisor, Samjong KPMG held a preliminary bid for potential buyers on May 24.
The asset for sale is 100% of the equity in Haitai htb held by LG H&H, and LG H&H moved to sell Haitai htb as part of its effort to dispose of low-return assets and strengthen its core cosmetics business. The sale price circulating in the market was reported to be around 300 billion won.
Haitai htb traces its roots to Haitai Beverage, famous for products such as "Podo Bong Bong," "Coco Palm," and "Crushed Pear." LG H&H acquired it to expand its beverage business after integrating Coca-Cola Korea Bottling earlier. LG H&H also expanded Haitai htb's business into health functional foods.
MGC Global, operator of Mega Coffee, is cited as a leading bidder. That is because it can use Haitai htb's production facilities to expand its lineup into ready-to-drink beverages. Another strength is that Haitai htb already has sales channels such as convenience stores and supermarkets.
Godo Partners was said to have highly valued the fact that Haitai htb has an earnings base from producing Coca-Cola. Last year, Haitai htb's sales to Coca-Cola Beverage totaled 171.9 billion won. In addition, Haitai htb has net worth of 260 billion won.
An IB industry source said, "The Haitai htb sale drew strong interest, with more than five parties, including SIs and FIs, submitting letters of intent (LOIs)," adding, "With preliminary talks scheduled with qualified bidders through the end of this month, there is a strong chance the transaction will close within the year."