이 기사는 2021년 08월 09일 08:02 thebell 에 표출된 기사입니다.

Deep-pocketed Hoban Construction Group is set to bid for MBK Partners-owned Doosan Machine Tools on its own without forming a consortium with a financial investor.

“We will bid for Doosan Machine Tools through our affiliates only,” a key official at Hoban Construction Group said, indicating that it is not interested in teaming up with a financial investor to acquire the machine tool maker.

Hoban is considered a strong candidate to win the race. Another frontrunner is Sae-A Trading, Global Sae-A’s subsidiary, which formed a consortium with two financial investors including A2 Partners to jointly bid for the company. This is probably to reduce acquisition burden.

Doosan Machine Tools’ revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) have declined for two straight years. But the company is recovering sharply this year thanks to a strong cyclical uptrend in the industry.

Its 2021 EBITDA is expected to increase to 280 billion won ($245 million), similar to the company’s record year in 2018. This has pushed up the estimated value of the company to between 2.7 trillion won and 3 trillion won.

Hoban has yet to decide on through which affiliate it will acquire Doosan Machine Tools. The South Korean conglomerate is reportedly considering several options to use its affiliates.

Hoban has three key affiliates – Hoban Construction, Hoban E&C and Hoban Property – with each controlled by children of the group’s founder and chairman Kim Sang-yeol.

Dae-heon, the chairman’s eldest son, is the largest shareholder in Hoban Construction, which is the conglomerate’s biggest affiliate. Hoban E&C is controlled by the second son Min-sung. Hoban Property is led by Yoon-hye, the chairman’s eldest daughter who holds the largest stake in the company.

Hoban has pursued an active mergers and acquisitions strategy to grow and expand into new markets. Hoban Construction previously acquired Pacificmarina and Resom Resort. Notable acquisitions by Hoban E&C included Ultra Construction & Engineering and Taihan Electric Wire. Hoban Property also acquired Dae-Ah Vegetable & Fruit Distribution and Samsung Gold Exchange.

It is likely that the conglomerate will bid for Doosan Machine Tools through Hoban Construction given the large size of the deal, industry watchers said. Hoban Construction had cash and cash equivalents of 416.7 billion won, short-term investments of 153.8 billion won and short-term loans receivable of 62.1 billion won at the end of 2020 on a consolidated basis.

Additionally, Hoban Construction had construction contracts worth 3.84 trillion won and cumulative profits from apartment sales of 1.38 billion won at the end of 2020, with the balance expected to be collected in the coming periods.

Hoban E&C also has a strong cash position, with cash and cash equivalents of 351 billion won, short-term investments of 45 billion won and short-term loans receivable of 10 billion won at the end of 2020 on a consolidated basis. It had construction contracts worth 3.17 trillion won, with about 1 trillion won of the amount remained to be collected.

Hoban E&C, however, used some of its cash resources to buy Taihan Electric Wire earlier this year. The cable producer was acquired by Hoban E&C in May in a 251.8 billion won deal. (Reporting by Gyoung-tae Kim)