이 기사는 2021년 03월 31일 08시09분 thebell에 표출된 기사입니다

Hoban E&C, part of the construction conglomerate Hoban Group, has announced its plan to acquire Taihan Electric Wire, a move seen as part of efforts by the South Korean civil engineering company to expand its presence across geographies.

The company will buy 40% of the cable maker from IMM Private Equity in a 251.8 billion won ($222.2 million) cash deal, which is expected to close by the end of May, according to its filing on Monday. It could also take a minority stake of 14.03% held by creditors of Taihan Electric Wire if they decide to participate in the sale.

The transaction, which seems to be aimed at vertical integration, underlines the construction conglomerate’s acquisitive growth strategy. In 2016 Hoban Construction, the parent company of Hoban E&C, acquired Ultra Construction & Engineering, which specialized in building civil infrastructure such as bridges, tunnels and roads.

The largest shareholder of Hoban E&C is Kim Min-sung, the second son of the conglomerate’s founder and chairman Kim Sang-yeol, with a 41.99% stake.

Hoban E&C has continued to grow in recent years but its operations account for only a small part of the conglomerate’s total revenue. Its high exposure to the domestic market has also long been considered one of the factors that make the company less competitive.

In contrast, exports account for nearly half of Taihan Electric Wire’s sales. The cable maker recorded 1.6 trillion won in revenue last year, with some 700 billion won or more than 40% of the total coming from overseas markets.



Hoban E&C will likely speed up overseas expansion in coming years by using Taihan Electric Wire’s solid position in the global high-voltage cable market, industry watchers said.

Taihan Electric Wire can produce 500-kilovolt extra-high voltage cables, with a broad customer base covering diverse geographies. The cable maker’s global network of customers could help Hoban E&C grow to be a global player.

Taihan Electric Wire is also one of a few companies in the world to have the technology to build submarine cables. Other companies that commercialized the technology include LS Cable & System and French cable maker Nexans. (Reporting by Min-kyu Sin)