이 기사는 2020년 03월 10일 08시00분 thebell에 표출된 기사입니다

South Korea’s private equity (PE) firm Curious Partners Investment (Curious Partners) has finished raising funds with the nation’s PE firm LK Investment Partners (LK Partners) to acquire debt-saddled South Korean shipbuilder Sungdong Shipbuilding & Marine Engineering (Sungdong).

Amid recovering domestic shipbuilding industry, the potential buyers offered a stable business model to receive approval from financial institutions’ investment committee. The deal is expected to close after a congregation of related persons at the end of this month.

According to investment banking (IB) industry sources on March 5, Curious Partners has recently completed fundraising to take over Sungdong. Curious Partners and LK Partners have formed a co-general partner (co-GP) to raise 75 billion won in which mutual aids, capital firms and savings banks join as limited partners (LPs).

The acquisition will be financed partly though a fund jointly formed with Mirae Asset Venture Investment and the remaining amount of 75 billion will be financed via acquisition financing. The consortium, composed of HSG Heavy Industries, Curious Partners and LK Partners will be the new owner of the shipyard after the congregation of the related persons to be taken place on March 31.

Curious Partners and LK Partners have offered the stable business model to limited partners who have strong doubts over the shipbuilding industry. Sungdong, once the eighth-largest shipbuilder in the world in terms of order backlog, was handed over to creditors including the Export-Import Bank of Korea in 2010. This Tongyeong-based shipyard has been under court receivership by the Changwon District Court since 2018. After three previous failed attempts at a sale, the consortium participated in the bidding and signed a stock purchase agreement (SPA).

Curious Partners and LK Partners have pitched the ship block production as the company’s new business model rather than high-risk shipbuilding. The shipbuilding industry is categorized as a risky business due to its sensitivity to business environment. On the other hand, it is easier for shipbuilders to generate operating profits through the block production.

In addition, South Korea’s shipbuilding industry has started to recover. Domestic shipbuilders received 24 new orders to build LNG carriers during the first eight months of 2019, which accounts for around 90 percent of the world’s total of 27. The outlook may also be rosy as demand for LNG-powered ships is growing due to the new environmental regulations.

(By reporter Jo Se-hun)