This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:01 p.m. on Aug. 31, 2026.
Taekwang Industrial, which has emerged as a big player in Korea's mergers and acquisitions (M&A) market after snapping up Aekyung Industrial Co. and Dongsung Bio Pharm in quick succession, has also jumped into the race to acquire Nexflex. The deal is structured as a four-party alliance involving a private equity fund (PEF) manager, a securities firm, and a KOSDAQ-listed company, and another point drawing attention is that Taekwang Industrial appears likely to remain in the role of a financial investor (FI).
According to the investment banking (IB) industry on the 31st, Taekwang Industrial teamed up with PEF manager Busan Equity Partners (Busan EP) to join the bidding for Nexflex. The structure calls for acquiring 100% equity in Nexflex held by MBK Partners, and Shinhan Investment & Securities and ITEK(119830) are also understood to have joined the alliance.
The transaction size is estimated at around 800 billion to 900 billion won. While Taekwang Industrial and ITEK will invest in a special-purpose company set up by Busan EP and Shinhan Investment & Securities for the Nexflex acquisition, Taekwang Industrial is said to be securing only preferred equity to prioritize the recovery of its investment later.
This contrasts with its move during the Aekyung Industrial Co. acquisition last year. In that deal, Taekwang Industrial formed a consortium with T2 Private Equity (PE) and Yuanta Investment, but it directly acquired 31.56% equity in Aekyung Industrial Co. to become the largest shareholder. It was a strategic investor (SI) aiming to take over Aekyung Industrial Co.'s management rights.
In other words, Taekwang Industrial has shifted direction to a deal where it lends its SI name value while seeking FI gains. While supplying capital to a transaction designed by Busan EP, it structured the deal to secure preferred equity and take priority in recovery, avoiding investment risk and management responsibility.
The backlash from the Aekyung Industrial Co. acquisition led to a strategy change at Taekwang Industrial. It had pursued Aekyung Industrial Co. with the goal of expanding into beauty amid a slump in its existing petrochemical and fiber businesses, but worsening profitability left it facing losses. Inside the company, some even said it was a "bad buy."
In practice, Taekwang Industrial is said to be participating with preferred stock, which is junior to the acquisition financing lenders but senior to common shareholders, and is demanding a structure that allows it to recoup its investment ahead of the PEF manager—also an equity investor—by setting conditions such as priority equity sales in a future listing.
Some worry that Taekwang Industrial's turn to an FI role could undermine deal certainty. Industrial capital needs to be out front to justify approvals and a sale, but Taekwang Industrial has been choosing transactions where acquisition financing can be strengthened with credit support to get its name on the roster, while trying to hold only an FI position during negotiations.
Previously, when Taekwang Industrial and private equity firm TPG reviewed acquiring K Shipbuilding Co., Ltd., Taekwang Industrial was also said to have demanded faster recovery of its investment than TPG. Because the deal involved a national key industry, jobs, and the regional economy, SI participation was required, but talks were halted after Taekwang Industrial's shift in stance, according to industry chatter.
An IB industry source said, "It is true that Taekwang Industrial has recently been making a strange play, pretending to be an SI while eyeing FI profits," adding, "Nexflex is the same, and as long as Taekwang Industrial insists on priority recovery terms, it will be hard for the transaction to proceed smoothly."