이 기사는 2019년 12월 03일 08시00분 thebell에 표출된 기사입니다

Macquarie Group is in final negotiations with South Korean private equity firm MBK Partners to buy Daesung Industrial Gases, the country’s largest gas supplier.

MBK Partners has granted exclusive negotiation rights on the gas company to the Australian investment bank and is currently negotiating a sale price, according to M&A industry sources on November 27. Macquarie has almost completed the due diligence process started early last month.

Having acquired the gas company only about two and a half years ago, MBK Partners initially maintained its position that it’s not in a hurry to exit its investment in the gas company. However, attractive terms offered by Macquarie have led the private equity firm to sit at the negotiation table.

“Selling [Daesung Industrial Gases] to Macquarie Group seems to be also the best option for MBK Partners as there are few players who can buy a gas company worth more than a trillion won,” said an investment banking industry source, adding that the deal could be signed as early as the beginning of December at a current negotiation pace.

Macquarie Group has plenty of experience and expertise in the energy and infrastructure sectors. The Australian bank is expected to purchase the Korean gas company through its Asian regional infrastructure fund, Macquarie Asia Infrastructure Fund (MAIF), managed by its Macquarie Infrastructure and Real Assets (MIRA) division. Macquarie’s MAIF Fund series have a strong track record of investing in various infrastructure assets across the Asian region. The division also has a deep understanding of the industrial gas industry, which apparently played a role in expediting talks on the deal.

Last year Macquarie raised $3.3 billion for its second Asian infrastructure fund (MAIF 2), through which it has invested in various infrastructure assets, including toll roads in India and the Philippines’ largest geothermal developer. Macquarie has set its eyes on Daesung Industrial Gases, seemingly because of its number one position in the domestic industrial gas market and stable profit structure.

Macquarie Group had participated in bidding for industrial gas supplier Linde Korea earlier this year, which ended up being sold to IMM Private Equity. The acquisition of Daesung Industrial Gases would make up for the missed opportunity, enabling Macquarie to solidify its presence in the infrastructure investment management business in Asia.

The transaction value is expected to be around 2.5 trillion won ($2.1 billion). Macquarie reportedly plans to use its MAIF 2 to fund the acquisition, as well as has secured acquisition financing from Samsung Securities and KB Securities, both of which already provided a letter of commitment (LOC).

Whether the deal could be delayed or not appears to depend on MBK Partners’ willingness to negotiate the price. If the private equity firm values its gas company far greater than what Macquarie is offering, the negotiation could take more time than expected.

Morgan Stanley and Kim & Chang are acting as financial and legal advisor, respectively, to MBK Partners. Lazard, Samjong KPMG and Kim & Chang are helping Macquarie on the deal.

(By reporter Kim Hye-ran)