It is reported that STIC Investments, JKL Partners, and Bain Capital participated in the main bid for the sale of the tire steel cord institutional sector of HS HYOSUNG Advanced Materials.
According to the investment banking (IB) industry on the 20th, three companies participated in the main bid conducted by KPMG Samjong, the sale advisor for HS HYOSUNG Advanced Materials.
JKL Partners is reportedly in full swing to raise funds, discussing acquisition financing conditions with KB Securities. STIC Investments is known to have participated in the main bid in collaboration with Korea Investment & Securities.
In the earlier acquisition process, more than ten investors, including sovereign wealth funds from the Middle East and strategic investors from Europe, gathered interest. HS HYOSUNG Advanced Materials and Samjong KPMG selected four candidates, including STIC Investments, JKL Partners, Bain Capital, and a Chinese strategic investor, as eligible preliminary candidates (shortlist) last April. The preferred negotiator is expected to be selected as early as the end of this month.
The sale price of the steel cord institutional sector of HS HYOSUNG Advanced Materials is estimated to be in the mid-1 trillion won range. This figure is about ten times the annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of 140 billion won. Tire steel cord is a key material in tire manufacturing that supports the weight of the vehicle.