Parkwon exploring minority stake sale Auto parts maker changes original plan to sell controlling stake
Translated by Ryu Ho-joung 공개 2020-06-12 08:00:35
이 기사는 2020년 06월 12일 08:00 thebell 에 표출된 기사입니다.
South Korean steel ball manufacturer Parkwon Co Ltd is exploring selling a minority stake after a deal to sell a controlling stake collapsed.Parkwon has signed a memorandum of understanding (MOU) with one of the potential buyers to sell a partial stake held by the company’s owner family, sources said on June 10. The two parties are negotiating terms of the sale, with Samjong KPMG managing the deal.
The company initially named private equity firm Corstone Asia as its preferred bidder to sell the owner family’s entire stake last October. But negotiations ultimately collapsed allegedly due to disagreements over the company’s valuation.
At the time the acquisition price was estimated at up to 200 billion won ($167 million), which represented an enterprise value of about 10 times the company’s 2018 earnings before interest, taxes, depreciation and amortization (EBITDA).
The deal size is expected to be reduced as the company’s owner family has decided to retain part of its stake. But there are chances that unexpected factors could affect the deal with other prospective buyers continuing to make offers to the company.
Founded in 1973, Parkwon manufactures steel balls for bearings. It counts major auto parts suppliers such as Schaeffler, SKF, Iljin and GMB Korea among its customers. The company is based in Jecheon, North Chungcheong Province, where it moved its plant in 2010 to expand production capacity. Parkwon also operates production sites in China and Vietnam. It recorded revenue of 34.4 billion won and operating income of 5.6 billion won for 2019.
The ball bearing sector continues to attract investors due to stable profitability. Parkwon’s peer NBG sold a controlling stake to a consortium of SBI Investment and Nano Co Ltd in 2018.
“Many ball bearing manufacturers generate steady profits based on their long history in the industry,” an industry insider said. “That's why investor interest is high in the sector, particularly in companies with succession issues and financing needs.”
(Reporting by Ar-rum Rho)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 스튜디오산타클로스ENT, 주주권익 보호 '구슬땀'
- 이에이트, AI 시뮬레이션·디지털 트윈 기술 선보여
- MBK, '몸값 2조' 지오영 인수 SPA 체결 임박
- [2024 더벨 글로벌 투자 로드쇼-베트남]한인이 설립한 RCE, 세계 첫 ‘중장비 온라인 중고거래’
- 회계법인 해솔, 부동산 타당성 자문 업무협약
- [2024 더벨 글로벌 투자 로드쇼-베트남]베트남의 지오영 '바이메드'·전기오토바이 '셀렉스' 눈길
- 지아이에스, 코스닥 상장 위한 예비심사신청서 제출
- [꿈틀대는 토큰증권 시장]'업계 표준' 루센트블록, '두자릿수' 레코드 조준
- [Company & IB]조달 '막바지' 롯데그룹, 롯데케미칼에 쏠리는 눈
- '910억 CB 발행' 아스트, 경영 정상화 속도 낸다