IMM PE wins bidding for SK Lubricants stake thanks to exit strategy PE firm becomes second largest shareholder of lubricants producer
Translated by Kim So-in 공개 2021-04-30 07:59:59
이 기사는 2021년 04월 30일 07:56 thebell 에 표출된 기사입니다.
Seoul-based IMM Private Equity will acquire a 40% stake in South Korea’s lube base oil supplier SK Lubricants for 1.1 trillion won ($993 million), thanks to its flexible exit strategy.There was reportedly little difference in bid prices among bidders including Korea Investment Partners, Apollo Global Management and Japan’s biggest refiner ENOES. IMM PE won the bid by offering better terms, including non-price factors, industry sources said.
The latest investment was conducted under the condition of SK Lubricants' initial public offering (IPO). Given that the deal includes a minority stake in the company, most of the bidders stated drag-along rights as a tool for protection in case their exits become difficult in the future.
IMM PE was the only candidate that didn’t include a drag-along clause in its terms and conditions. The PE firm has experienced from its previous investments that it is not easy for a minority shareholder to exercise drag-along right against conglomerates. It was also burdensome for seller SK Innovation to guarantee drag-along rights that could threaten its management rights.
Instead, IMM PE came up with an exit strategy that retrieves its invested capital through dividends, considering SK Lubricant’s strong cash-generating capability. The PE firm chose downside protection that could generate a certain amount of profit even if SK Lubricants fails to go public.
For IMM PE, the latest deal marks its first investment from its private credit arm, IMM Credit Solution, launched in the second half of 2020. The PE firm plans to finance half of the total investment through its project fund, with the rest coming from acquisition loans, which will be provided by Shinhan Bank and Hana Financial Investment.
The proceeds from the stake sale will be used to finance SK Lubricants’ electric vehicle battery plants in the U.S. (Reporting by Si-eun Park)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
best clicks
최신뉴스 in 전체기사
-
- 현대건설, '힐스테이트 죽림더프라우드' 분양 중
- [Red & Blue]새내기주 한싹, 무상증자 수혜주 부각
- 아이티센, 일본 IT서비스 시장 공략 '잰걸음'
- 소니드로보틱스, 온디바이스 비전 AI ‘브레인봇’ 공개
- (여자)아이들 '우기’, 초동 55만장 돌파 '하프밀리언셀러'
- [ICTK road to IPO]미국 국방산업 타깃, 사업 확장성 '눈길'
- [Red & Blue]'500% 무증' 스튜디오미르, IP 확보 '성장동력 발굴'
- [코스닥 주총 돋보기]피엔티, 이사회서 드러난 '중국 신사업 의지'
- [thebell note]XR 기술의 사회적 가치
- [Rating Watch]SK하이닉스 글로벌 신용도 상향, 엔비디아에 달렸다?