이 기사는 2021년 03월 25일 07:45 thebell 에 표출된 기사입니다.

The competition heats up among three investment firms and one industry player vying for up to a 49% stake in SK Lubricants as the race heads into the final stretch.

IMM Private Equity (IMM PE), U.S.-based Apollo Global Management, Korea Investment Partners and Japan’s petroleum conglomerate ENEOS submitted final offers for a minority stake in the company earlier this month. All of them are still in negotiations with SK Lubricants, with a preferred bidder expected to be named as early as next week, according to industry sources.

SK Lubricants gave the bidders considerable leeway to propose a deal structure, meaning that a final decision by the company will depend on non-price factors, as well as their offer prices, industry watchers said.

IMM PE is considered one of the strongest candidates to win the race. It has a strong track record of investing in minority stakes in several companies, including Shinhan Financial Group, K bank and Hyundai Samho Heavy Industries.

The Seoul-based firm, if selected, plans to invest through its first private credit fund, which was launched as IMM PE tries to diversify away from traditional buyout investments. This could allow the firm to have more options with respect to a deal structure, industry watchers said. Private credit funds invest in various debt securities such as investment-grade and high-yield corporate bonds, asset-backed securities, collateralized loan obligations and commercial mortgage-backed securities.

Apollo has reportedly shown a strong desire to invest in the company. It is also said to have previously invested in the industrial lubricant sector. The U.S. firm has been searching for investment opportunities in South Korea over the past years, although it has no track record yet in the country.

ENEOS, formerly known as JXTG, has a longstanding partnership with SK Lubricants. The two companies built a joint venture plant in Ulsan in 2010 to produce lubricant base oil. ENEOS is the only strategic investor in the race.

Korea Investment Partners has a strong track record in venture capital and is growing its presence in private equity. Its network of limited partners and track record in various sectors are considered the firm’s strength.

“I heard the bidders have been further narrowed down by SK Lubricants as negotiations actually began even before final offers were submitted,” an industry insider said.

Citigroup Global Markets Korea Securities is acting as financial adviser to SK Lubricants. (Reporting by Hee-yeon Han)