이 기사는 2019년 10월 23일 08시00분 thebell에 표출된 기사입니다

South Korean mobile games maker Netmarble, which participated in the final bidding round for the stake in Woongjin Coway in an unexpected move, submitted a bid that is estimated to include nearly 20 percent of a control premium.

Korea Investment & Securities, lead manager of the seller Woonjin Group, announced Netmarble as preferred bidder for a 25.08 percent stake in the Group's water purifier rental unit Coway last Monday. The mobile games maker reportedly offered a bid of around 99 thousand won per share.

The price implies that the games maker has estimated the enterprise value (EV) of Coway at approximately eight trillion won, considering the target company's net borrowing as of the end of June and the entire (100 percent) equity value calculated from the offer price per share. The target's annual EBITDA (earnings before interest, taxes, depreciation, and amortization) -- which is estimated based on the company's EBITDA during the first half -- is close to 828.5 billion won. As a result, the EBITDA multiple of the target company, calculated by dividing EV by EBITDA, is estimated to be about 9.73x.

Coway trades at 84.3 thousand won as of October 16, meaning that the offer price also implies that Netmarble is expected to pay a control premium of about 20 percent.

Woonjin Group reportedly wants to sell the stake at a price higher than 103 thousand won per share. The enterprise value and EBITDA multiple based on this price target are estimated to be 8.35 trillion won and 10.08x, respectively.

The difference in price for the stake between Woonjin Group and Netmarble stands at about 74 billion won, which is seemingly trivial compared to the deal value at nearly two trillion won. However, the gap could widen depending on the results of detailed due diligence currently underway by Netmarble. Woonjin, on the other hand, would not budge at a price lower than 1.9 trillion won in order not to sell at a loss.

Many of other suitors decided to drop out of the bidding process, following their month-and-a-half-long due diligence. One of the biggest reasons they retreated is Coway's seemingly stalling growth. The company currently has the largest market share of the water purifier rental market at home, but its new customer growth reportedly continues weakening due to fierce competition, with the country's major conglomerates, including LG and SK, entering the market.

Netmarble still seems optimistic. "We don't agree with the view that Coway's growth is stalling based on the results of our preliminary due diligence. We think its potential of growth is high not just in Korea but also in Southeast Asia and the U.S.," a company official said in a conference call on October 14. Some industry watchers, however, expect the games maker's stance could change after its detailed due diligence ahead of signing a share purchase agreement (SPA).

(By reporter Han Hee-yeon)