이 기사는 2021년 08월 25일 08:08 thebell 에 표출된 기사입니다.

South Korea’s Samsung Card has started a process to sell its 19.9% stake in Renault Samsung Motors, but it may be difficult to find a buyer due to a lack of incentives that make the automaker attractive to investors.

Samsung Securities and Rothschild, which are managing the sale process, have sent a teaser to potential buyers, mostly foreign private equity firms, according to industry sources on Monday.

The sale is in the early stages, but many doubt that it will end up successfully as potential investors see few merits in acquiring a minority stake in the automaker.

The two-page long teaser document, seen by the bell, highlighted benefits that can be gained as a subsidiary of Renault, one of the biggest automaker in the world, and the South Korean company’s wide mix of vehicles available to meet market demand.

Renault’s global brand image and competitive technology were mentioned as advantages in the document. The French carmaker’s focus on electric vehicles will also lead to the South Korean unit’s launch of new electric car models in the future, the document said.

The document revealed that Renault Samsung Motors’ annual operating profit margin was about 5% on average in the past 10 years through 2019. The seller also stressed in the teaser that the company has maintained a high dividend payout ratio, a factor that could make the minority investment attractive.

The company’s D-segment cars, such as the SM6 sedan and the QM6 sport utility vehicle, have gained in popularity in the domestic market, with more than 3,000 QM6 vehicles sold monthly for five straight months through July.

According to the document, Renault Samsung Motors sold a total of 11,033 vehicles in July. A domestic sale of 4,958 units was down 21% year-on-year. But the company exported 6,075 units in the month, up 132% from a year earlier thanks to strong sales of XM3 after its launch in the European market in June. The company’s cumulative export sales through July stand at 33,161, up 120% year-on-year.

However, Renault Samsung Motors’ financial performance has been declining in recent years. According to its audited report, the company recorded revenue of 3.4 trillion won ($2.9 billion), down by more than 1 trillion won year-on-year.

The company swung to an operating loss of 79.7 billion won last year, compared to a profit of 211.2 billion won in 2019. Earnings before interest, taxes, depreciation and amortization also declined from 330 billion won to 72.5 billion won in the same period.

“I doubt the sale will attract sufficient interest from investors given the company’s deteriorating financial performance and the size of the stake up for sale,” said an official at one private equity firm in Seoul.

“Private equity firms seeking to build a network with Renault or Samsung may show interest in buying the stake, but the likelihood is low.” (Reporting by Hee-yeon Han)