이 기사는 2022년 04월 28일 08시04분 thebell에 표출된 기사입니다

Market insiders are paying attention to whether IMM Investment will have a chance to work with global private equity firm KKR through its sale of Eco Management Korea (EMK), the nation’s waste managing and recycling service provider.

EMK’s largest shareholder IMM Investment and sale managers EY Hanyoung and Credit Suisse held the first round of bidding for EMK on Monday, according to industry sources. Major financial investors including E&F Private Equity, VL Investment and Eugene Private Equity did not appear in the bidding round. SK ecoplant, which was considered a strong candidate, also didn’t join the race.

The first round of bidding seems to have failed to garner strong response from potential buyers as major potential buyers didn’t participate, except for Ecorbit. Yet, IMM Investment is unlikely to have disappointed by the results. That's because Ecorbit is expected to hand in high bid, reflecting its desire to acquire EMK, and Ecorbit's acquisition may pave the way for IMM Investment to work with KKR.

Ecorbit needs to acquire EMK to reduce its reliance on the landfill business. EMK holds the second largest share in the general waste incineration market. Ecorbit is reportedly preparing to bid high to take over the EMK.

Ecorbit’s strongest rival SK ecoplant remains open to joining the final round of bidding. Market observers also said SK ecoplant didn’t participate in the first round of bidding with an aim to prevent overheated competition.

Ecorbit is expected to be IMM Investment’s most preferred counterparty if Ecorbit’s takeover bid is high enough. If EMK is sold to Ecorbit, IMM Investment will secure a chance to build a relationship with global private equity firm KKR. Ecorbit is 50% owned by TY Holdings, with the remaining 50% owned by KKR.

IMM Investment is stepping up efforts to expand its business to overseas markets. The firm has reportedly set its internal goal to grow to a leading manager in Asia and the Pacific region. IMM Investment is likely to benefit from solid relationship with KKR.

“IMM Investment reportedly prefers a strategic investor over a financial investor,” an industry source. “Ecorbit has been mentioned as the strongest candidate for EMK in terms of non-price factors as well, as (IMM Investment’s) potential partnership with KKR could help the investment firm expand into global markets.”

EMK is the largest company among the nation’s waste management companies that have been put up for sale this year. Eight subsidiaries of the company will be sold through the sale, excluding crown jewel Shindaehan Refined Fuel.

IMM Investment reportedly seeks to sell the company for more than 600 billion won ($474 million). EMK recorded earnings before interest, taxes, depreciation and amortization of 35 billion won in 2020 on a consolidated basis, including Shindaehan Refined Fuel. (Reporting by Byung-keun Kam and Se-hun Jo)