Taekwang Industrial has been selected as the preferred bidder in the race to acquire Aekyung Industrial.
Taekwang Industrial said on the 12th in a filing that it was notified by Samjong KPMG, the sell-side advisor for Aekyung Industrial, that a consortium formed by the company, T2 Private Equity (PE), and Yuanta Investment had been selected as the preferred negotiation partner.
Taekwang Industrial plans to acquire Aekyung Industrial and nurture the cosmetics business as a new growth engine. Its existing main businesses are textiles and petrochemicals, and the industry downturn has created a need for new businesses. An option is being discussed under which Taekwang Industrial would acquire about 63% equity in Aekyung Industrial held by AK Holdings, the holding company of Aekyung Group, and others, for a price in the high 400 billion won range.
Taekwang Industrial noted, "If specific details are finalized during the course of the future transaction, we plan to make a disclosure in accordance with disclosure-related laws and regulations."