S&I Corp to sell construction division to GS E&C Deal and sale of another division will leave LG’s subsidiary to focus only on leisure business

Translated by Ryu Ho-joung 공개 2021-10-26 08:08:16

이 기사는 2021년 10월 26일 08:06 더벨 유료페이지에 표출된 기사입니다.

S&I Corp, LG Corp’s wholly owned subsidiary, is set to offload its construction division as a whole to GS Engineering & Construction, with a separate process ongoing for the sale of its facility management business.

The Seoul-based company is in advanced talks to sell its construction business to GS E&C, industry sources said on Friday. The deal and the potential sale of its facility management division to a private equity firm would leave it to focus only on the leisure business.

S&I Corp has three business divisions: construction, facility management and leisure. The construction division designs and builds research facilities, clean rooms and plants. The facility management division provides operation and maintenance services of buildings and factories. The leisure division operates a resort and a golf club in Gonjiam, Gyeonggi Province.

The largest portion of S&I Corp’s total revenue comes from the construction business, which accounted for about 61% of the overall revenue of 1.7 trillion won ($1.45 million) in 2020 and nearly two-thirds of the total of 2.4 trillion won in 2019.

In August, S&I Corp carved out its construction and facility management divisions as separate entities to sell them to external buyers. The sale process for the facility management is underway, with several private equity firms interested in acquiring the division.

After the deal closes, GS E&C is said to intend to merge S&I Corp’s construction division with its existing business to create a subsidiary focused on building plants.

S&I Corp and GS E&C both declined to comment, saying there was nothing to comment at this time. (Reporting by Ha-na Suh)
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