이 기사는 2021년 04월 21일 07:56 thebell 에 표출된 기사입니다.

The Korean Federation of Community Credit Cooperatives (KFCC)’s early investment in electric vehicle technology is paying off, with its bet on EV charger manufacturer Signet EV set to generate returns of more than four times invested capital in two and a half years.

SK Holdings’ board of directors last Thursday approved the acquisition of a controlling stake in Signet EV, according to a regulatory filing. The holding company of SK Group will buy 1.62 million convertible preferred shares in Signet EV from private equity firm Rio Invest, which owns 2.62 million convertible preferred shares in the company, for 81 billion won ($72.8 million) alongside 210 billion won worth of new shares.

After the transaction is completed, SK Holdings will hold 55.5% of Signet EV and Rio Invest will become the second largest shareholder.

The purchase price represents more than four times what Rio Invest paid for the company about two and a half years ago. The firm invested 50 billion won to acquire Signet EV through its first fund in December 2018.

KFCC provided a 35 billion won anchor commitment to the fund. Focusing on the growth potential of the electric vehicle market, the federation decided to invest in Signet EV despite concerns at the time about uncertainty over the mass production of electric vehicles.

KFCC’s investment was then considered a bold move, also because Rio Invest was young and had little track record in buyout. Rio Invest was founded in 2016 by Yoo Joon-ryeol, who formerly served as chief executive at Tong Yang Securities, currently renamed Yuanta Securities.

“Rio Invest had been struggling to raise the fund, with some at the time expecting the collapse of the deal, but the tide turned after KFCC wrote a big check to the firm,” said an industry insider.

Rio Invest’s full exit from Signet EV is estimated to deliver a return of more than two times invested capital, if the company’s growth continues to accelerate on the back of rising demand for electric vehicles.

Signet EV was launched in 2016 after being spun off from Signet Systems, a manufacturer of industrial battery chargers. Its 350kW charger achieved validation for the first time globally from US safety certification company UL. The company counts Hyundai Motor, Kia, BMW, Ford Volkswagen and Nissan among its customers.

Other investments made by KFCC included the cell and gene therapy contract development and manufacturing organization Cognate BioServices, which was recently acquired by Charles River Laboratories; golf equipment maker Majesty Golf Korea, which is looking for a buyer; and SK IE Technology, which is expected to go public in May. KFCC is expected to earn two-digit returns from all of these investments. (Reporting by Se-hun Jo)