이 기사는 2021년 05월 28일 08시02분 thebell에 표출된 기사입니다

Global private equity firm KKR & Co and South Korea’s Taeyoung Group are in talks to create a waste management giant by combining three businesses – ESG Co, ESG Cheongwon and TSK Corp.

KKR and Taeyoung Group have agreed to own 50% each of the combined company, according to sources.

The discussions come after KKR bolstered its portfolio of waste management in South Korea last year by acquiring ESG Co and ESG Cheongwon as well as a significant minority interest in TSK Corp. The US-based firm is currently in the process of refinancing its loans used to fund the purchases.

In June 2020, KKR bought 100% of ESG Co and 77.84% of ESG Cheongwon from Anchor Equity Partners through a special purpose vehicle called Easel SPV in a deal worth 875 billion won ($782 million). Shortly after the transaction was completed, KKR also purchased a 37.39% stake in TSK Corp for 440.8 billion won from minority shareholders.

TSK Corp is 62.61% owned by TY Holdings, the holding company of Taeyoung Group. Before the investment by KKR, the remaining 37.39% was held by SK E&C (16.70%), Huvis Corp (16.52%) and SK Discovery (4.17%).

TSK Corp was founded in 2010 as a joint venture between Taeyoung Group and SK Group, with SK E&C having held the second-largest stake in the company for the past 10 years. However, SK decided to unload its shareholdings in TSK Corp after signing a deal to buy another waste management company, EMC Holdings, from Affirma Capital last year over concerns about antitrust regulatory review.

KKR invested in the two deals through the KKR Global Impact Fund SCSp, which closed at $1.3 billion in February 2020. The fund is focused on investing in areas related to the United Nations Sustainable Development Goals, such as responsible waste management and clean water protection, across the Americas, Europe and Asia. (Reporting by Si-eun Park)