이 기사는 2020년 03월 11일 08시00분 thebell에 표출된 기사입니다

South Korea’s homegrown private equity firm Glenwood Private Equity (Glenwood PE) closed its acquisition of SKC Kolon PI, the world’s largest polyimide film maker. The new owner of the polyimide film maker is likely to focus on a post-merger integration (PMI) process.

The PE firm finalized the deal to acquire SKC Kolon PI from Korean chemical materials manufacturers Kolon Industries and SKC, according to M&A industry source on March 6. The deal closed three months after the sell- and buy-side signed a stock purchase agreement (SPA) at the end of December 2019.

Glenwood PE now owns a 54.07 percent stake in the Kosdaq-listed SKC Kolon PI. Of the acquisition cost of 660 billion won, the PE paid around 610 billion won to the sell-side and the remaining amount will be used for future investments.

The PE firm is expected to pursue a strategy to boost the company’s enterprise value by strengthening its presence in the global market. The world’s largest polyimide film maker with 30 percent market share is likely to increase its PI film production and enhance competitiveness to become a more dominant player in the global market.

SKC Kolon PI’s mainstay PI film, which can replace glass for display substrates, is a core material that can enable the production of a flexible screen, which is a must for a foldable phone.

With the latest transaction done, Glenwood PE has used around 80 percent of its blind-pool fund. The PE firm financed 135 billion won through the blind-pool fund to acquire SKC Kolon PI. The remaining amount was funded through acquisition financing (200 billion won) and co-investment fund (325 billion won).

South Korea’s National Pension Service (NPS) and Korea Teachers Credit Union (KTCU) are among major limited partners of the PE firm’s co-investment fund.

The two anchor investors put their money in the co-investment fund in two different tranches. Investors including KTCU and Nonghyup put a total of 250 billion won in class one redeemable convertible preference shares (RCPS). NPS solely put 75 billion won in class two RCPS. Class one RCPS take priority over class two RCPS with respect to claims on principal and interest.

(By reporter Kim Hye-ran)