GS E&C expands water treatment footprint into Vietnam Korean builder is on track to list its water treatment unit next year
Translated by Ryu Ho-joung 공개 2021-10-26 08:08:11
이 기사는 2021년 10월 26일 08:07 thebell 에 표출된 기사입니다.
GS Engineering & Construction, the construction arm of South Korean conglomerate GS Group, will invest an additional capital of 8 billion won ($6.8 million) in its wholly owned subsidiary Global Water Solution, to expand its water treatment footprint into Vietnam, bringing the total invested in the business to nearly 640 billion won.The transaction will be completed in early November, the company said in a regulatory filing on Friday. Global Water Solution will use the proceeds to increase capital of its subsidiary, GS Inima Environment, which will acquire Vietnamese water treatment company PMV.
GS E&C entered the water treatment market in 2011 by acquiring Spain-based GS Inima for about 300 billion won. Global Water Solution, founded earlier this year, is an intermediate holding company for GS E&C’s water treatment business.
The launch of Global Water Solution, domiciled in South Korea, signals the building company’s intension to list shares of GS Inima on the South Korean stock exchange via the intermediate holding company under a policy adopted by the Korean Exchange in 2011.
Companies that benefited from that policy included LS Cable & System Asia and Doosan Bobcat, which floated on the Kospi in 2016. GS E&C is working with Korea Investment & Securities to take GS Inima public.
A potential initial public offering is unlikely before the second half of 2022 because it will take time to complete due diligence of the water treatment unit’s overseas operations, industry watchers said. GS Inima has over 40 subsidiaries in the US, South America and Europe, and more is expected to be added as it expands into Southeast Asia.
GS Inima’s revenue exceeded 200 billion won in 2016 and reached 295 billion won in 2020, with its net profit growing to 30 billion won. The company recorded a net profit of 12.7 billion won in the first half of this year, up nearly 30% from 9.8 billion won a year earlier.
GS Inima has three business areas: concessions, operation and maintenance services, and engineering, procurement and construction. The concession business is a mainstay for the company’s growth, accounting for about 86% of its total revenue and helping to smooth volatility of revenues from other businesses. (Reporting by Min-kyu Sin)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
best clicks
최신뉴스 in 전체기사
-
- '푸드테크에 진심' 롯데벤처스, 투자재원 확충 시동
- [thebell interview/비상하는 K-우주항공 스타트업]박동하 “코스모비로 우주와 인간 가까워지기를”
- [모태 2024 2차 정시출자]‘AC전용' 스포츠출발, 상상이비즈 '연속 GP' 도전
- '오스템임플란트 볼트온' MBK-UCK, 브라질 임플란트 3위 업체 인수
- '주주환원 강화' 케이카, 1분기 실적 주목
- 가보지 않은 길 'ARC' 셀비온-앱티스 맞손, 독성에 도전
- [여전사경영분석]BNK캐피탈, 순익 반등에도 수익성 제고 과제 여전히
- [은행경영분석]권재중 BNK금융 CFO 첫 성적표 'CET1 12%대' 진입
- 마이금융파트너, 신계약 성과에 2년째 매출 급증
- [여전사경영분석]문동권식 수익다변화 전략 적중…신한카드, 순익 회복 시동