Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

Daesung Industrial Gases is up for sale. Sale price of this buyout deal is estimated at around ₩1.5tril. The gas supplier is owned by a consortium led by Goldman Sachs (62% stake) and the gas supplier’s parent Daesung Group Partners Co. (38% stake). The stakeholders of Daesung Industrial Gases sent the letter to invite buyers to the auction and reportedly received preliminary bids from more than 10 industrial companies and private equity funds at home and abroad. The stakeholders are planning to shortlist preferred bidders within next week. They are planning to complete this sale process by next February. Much attention is on SK Holdings who is viewed as the strongest contender in the bidding race.* In Part 1 (as below), I summarized this buyout deal with valuation related issues. In Part 2, I will specifically look into SK Group's intention to use this buyout deal to accelerate and facilitate its own restructuring process involving SKT split-up and SK Holdings+SKT Holdco merger.

Daesung Industrial Gases is up for sale. Sale price of this buyout deal is estimated at around ₩1.5tril. The gas supplier is owned by a consortium led by Goldman Sachs (62% stake) and the gas supplier’s parent Daesung Group Partners Co. (38% stake). The stakeholders of Daesung Industrial Gases sent the letter to invite buyers to the auction and reportedly received preliminary bids from more than 10 industrial companies and private equity funds at home and abroad. The stakeholders are planning to shortlist preferred bidders within next week. They are planning to complete this sale process by next February. Much attention is on SK Holdings who is viewed as the strongest contender in the bidding race.* In Part 1 (as below), I summarized this buyout deal with valuation related issues. In Part 2, I will specifically  look into SK Group's intention to use this buyout deal to accelerate and facilitate its own restructuring process involving SKT split-up and SK Holdings+SKT Holdco merger.

Daesung Industrial Gases Buyout Part 1 - Deal Summary and Valuation Issue

South Korea

Daesung Industrial Co., Ltd. purchases and distributes petroleum and gas products through its gasoline stations and propane gas filling stations. The Company also distributes electricity, offers construction services, and manufactures industrial machinery.  In addition, Daesung Industrial invests in venture capital through its subsidiary.

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Daesung Industrial (128820 KS)

Daesung Industrial Gases Buyout Part 1 - Deal Summary and Valuation Issue

Daesung Industrial Gases is up for sale. Sale price of this buyout deal is estimated at around ₩1.5tril. The gas supplier is owned by a consortium...

Sanghyun Park

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52-week Range

Market Cap (USDm)

P/E

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