This article was published on May 15, 2025, at 5:58 p.m. on the ChosunBiz MoneyMove site.
Domestic private equity fund manager Greenwich PE has reduced the selling price of the bus company owned by Tcha Partners to 390 billion won and secured about half of the funds. However, with only one month remaining for the exclusive negotiation period, there is pressure to accelerate funding to finalize the transaction.
According to investment banking (IB) industry sources on the 15th, Greenwich PE is raising funds for the acquisition of the bus company owned by Tcha Partners. Half of the total selling price will be raised through acquisition financing, while the other half will be gathered through a project fund. Currently, about half of the project fund is secured, and in terms of acquisition financing, they are only waiting to select a broker due to overbooking.
However, if the acquisition funds are not raised by next month, the possibility of changing buyers is also being discussed. Greenwich PE currently holds the exclusive negotiation rights for the acquisition of the bus company owned by Tcha Partners, but the deadline is until June. Greenwich PE plans to request an extension of the negotiation period after securing as much funding as possible.
It is reported that the affiliated company YIDO is considering an investment of around 5 billion won out of the total project fund size. YIDO operates in real estate and golf course leasing, as well as waste treatment through its 47 subsidiary companies. Given the limited business correlation between its main operations and the bus company, it is analyzed that YIDO will find it difficult to invest a large amount.
The fact that the asset targeted for acquisition is not a regular corporation but a bus company subject to quasi-public management is seen as a factor increasing the difficulty of the transaction. For major investors like pension funds and mutual aid associations, it could be burdensome to invest in assets that require monitoring of local governments and political circles, such as the Seoul Metropolitan Government. An IB industry source said, “The bus company has a public nature, and there are union issues, making it difficult to invest.”
Seoul Mayor Oh Se-hoon announced the '20th anniversary innovation plan for the city bus quasi-public system' last October, stating, “There have been instances where private capital, including some private equity funds, acquired six bus companies and resold them in a short period, undermining public interest,” and added, “In the future, we will create a structure that prevents the entry of unhealthy capital and excessive revenue.”
According to the innovation plan, a pre-review system will be introduced when bus companies are sold, and the company's dividend policy cannot exceed 100%. Additionally, if a garage is sold arbitrarily, it will not be eligible for support such as garage rental fees. There will also be penalties if resold within five years of the acquisition. This effectively makes it more difficult to recover investment funds.
Tcha Partners owns the following through 'Public Mobility Fund No. 1': Korea BRT, Myungjin Transportation, Dongin Passenger, and Daejeon Seunghap; through 'Public Mobility Fund No. 2': Ganghwa Transportation, Samhwan Transportation, Songdo Bus, Seongsan Passenger, and Incheon Smart Joint Company; through 'Public Mobility Fund No. 3': Dong-A Transportation; and through 'ESG Public Mobility Fund': Dowon Transportation, Seonil Transportation, Singil Transportation, and Seun Transportation.
Greenwich PE was established in 2020 by YIDO CEO Choi Jeong-hoon. It is currently led by CEO Sim Jeong-wook. In 2022, it acquired Seonjin Transportation, which owns about 300 city buses in Seoul, for 100 billion won in partnership with Calista Capital and Tcha Partners.
CEO Choi is the eldest son of Choi Deung-kyu, chairman of Daebo Group. Daebo Group has 14 affiliates centered around Daebo Distribution and Daebo Construction since the establishment of its predecessor, Daebo Industries, in 1981. YIDO, a waste treatment specialist, was formed by merging its predecessor, established in 2006, with Daebo E&C.