SK Networks, Haier, Carlyle join bid to acquire Coway
Seoul-based trading company SK Networks, Qingdao-based consumer electronics maker Haier and US private equity The Carlyle Group have joined the preliminary bidding to acquire 25.08 percent stake in water purifier rental company Coway, according to industry sources on July 31.
They are among seven contenders that have submitted letters of interest for acquisition roughly valued at 2 trillion won ($1.7 billion). The contenders will be shortlisted by as early as this week and a preferred bidder is expected to be announced in September, following a monthlong due diligence.
Courtesy of Coway
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Coway’s major shareholder Woongjin Group expressed its intention to resell its stake in June in a move to reduce leverage, just three months after the 1.7 trillion won acquisition by a consortium led by an educational unit Woongjin Thinkbig.
The company currently takes the lead in the water purifier rental market, with some 40 percent market share coupled with door-to-door distribution channels. Coway is followed by SK Networks’ wholly owned unit SK Magic.
Its operating profit in the second quarter came to 138.2 billion won, up 6.9 percent on-year, and its revenue reached 755.5 billion won, up 11.4 percent.
By Son Ji-hyoung (email@example.com)