이 기사는 2021년 04월 30일 07시56분 thebell에 표출된 기사입니다

DS Networks, one of the major South Korean developers, has teamed with investment firms SkyLake Equity Partners and IPM Group to buy Daewoo Engineering & Construction (Daewoo E&C) in its second attempt to acquire the company.

The consortium is working with Morgan Stanley to prepare a bid for a 50.75% stake in Daewoo E&C owned by KDB Investment, industry sources said.

DS Networks reportedly approached the two investment firms about a partnership. “DS Networks is showing strong interest in acquiring Daewoo E&C. This is its second acquisition attempt after the first one four years ago,” said an industry insider.

In 2017, the developer had teamed up with a Chinese construction company to join other bidders in an auction for Daewoo E&C. Hoban Construction had won the bidding war, but it ultimately called off the acquisition due to concerns about losses and contingent liabilities related to Daewoo E&C’s overseas projects.

SkyLake Equity Partners’ capability to raise capital have attracted DS Networks to work with the firm, industry watchers said. The Seoul-based firm last year closed its new blind-pool fund at 750 billion won ($677 million). It also recently completed the 1 trillion won acquisition of Solus Advanced Materials, formerly known as Doosan Solus, in partnership with strategic investors Lotte and LG.

London-headquartered IPM Group specializes in energy and infrastructure investments. Its expertise in infrastructure and plants could help Daewoo E&C grow its core businesses, industry watchers said.

Founded in 2014, IPM Group has offices in San Francisco, Hong Kong and Seoul apart from the UK. Its notable deals include buying a $900 million stake in a liquefied natural gas terminal in Dunkirk, France, in partnership with South Korean investors including Samsung Securities in 2018.

DS Networks reportedly has deep understanding of Daewoo E&C’s business and culture as the companies have worked together several times.

“DS Networks has a friendly relationship with Daewoo E&C’s management,” said another industry insider. “I heard DS Networks had been considering recruiting staff from Daewoo E&C when it had attempted to acquire Doosan E&C last year.”

A consortium led by DS Networks participated in the bidding process for Doosan E&C last year but eventually pulled out. (Reporting by Byung-yoon Kim)