이 기사는 2022년 01월 13일 08시07분 thebell에 표출된 기사입니다

KCGI, a Seoul-based private equity firm, has recently acquired a 25% stake in LIG Corp for 100 billion won ($84 million) from Koo Bon-sang, the holding company’s chairman, and his younger brother Koo Bon-yeop, according to sources.

The deal included a call option that allows the Koo brothers to buy KCGI's stake three years later at a price that provides the private equity firm with a certain rate of return.

At the same time, the shareholder agreement provided KCGI with a drag along right that will enable the private equity firm to sell its stake to a third party and force the Koo brothers to join the sale if LIG Corp fails to go public within an agreed upon period of time.

LIG Corp’s subsidiaries include defense company LIG Nex1, software company LIG System and facility management company Huseco. Especially, LIG Nex1’s growth has been accelerated in recent years, helping to boost the value of its parent company.

However, the Koo brothers, who are LIG Corp's largest shareholders, are facing criminal charges that they evaded 133 billion won in taxes when they raised their stakes in the holding company several years ago by mispricing shares.

Prosecutors sought a prison term of 10 years and eight years, respectively, for Koo Bon-sang and Koo Bon-yeop in November last year, with the court’s ruling expected later this month. Many legal experts expect the defendants to appeal, which could lead to years of legal fight.

This could delay LIG Corp’s potential listing on the stock exchange because the Korea Exchange wouldn’t give the green light to a company whose majority shareholders have legal issues.

In a worst case scenario, if the company fails to go public by the agreed upon deadline, KCGI could opt to exercise a drag along right, which could threaten the Koo brothers’ control over LIG Corp. (Reporting by Se-hun Jo)