Global Sae-A has begun in earnest to sell its paper business division, including Tailim Paper and Tailim Packaging. As part of a portfolio reshuffle to boost corporate value and improve its financial structure, multiple domestic and overseas corporations are said to have submitted letters of intent (LOIs) in the recent preliminary bidding.
According to the investment banking (IB) industry on the 18th, UBS, the sell-side advisor, recently held preliminary bidding for the sale of Global Sae-A's paper business division, and multiple corporations submitted letters of intent.
The assets for sale are the affiliates in the paper and packaging division owned by Global Sae-A. They include Tailim Paper, a manufacturer of corrugated base paper, Tailim Packaging, a manufacturer of corrugated boxes, Jeonju Paper, which produces newsprint and corrugated base paper, and Jeonju Onepower, which operates a combined heat and power plant.
These affiliates posted cumulative sales of 904 billion won and operating profit of 73 billion won as of May this year. The vertically integrated structure spanning from corrugated base paper production to packaging manufacturing and energy supply is cited as a strength of Global Sae-A's paper business.
Earlier, on Mar. 3, Global Sae-A launched the sale process by distributing an information memorandum to potential buyers at home and abroad, including Japanese and Chinese paper corporations. The industry is watching not only strategic investors (SI) seeking business synergies within the paper and packaging industry but also the acquisition potential of private equity fund (PEF) managers.
Global Sae-A grew on the back of Sae-A Trading, one of the world's largest apparel original equipment manufacturing (OEM) corporations. Starting with the acquisition of Tailim Packaging in 2020, it went on to purchase Jeonju Paper and others in succession, nurturing the paper business as a core pillar. However, in line with the group's recent drive to reshape its business portfolio and strengthen financial soundness, it is pushing ahead with the sale of the paper business.