A private equity firm LK Partners, in collaboration with Korea's third-largest cement supplier Hanil Cement, will acquire Hyundai Cement, the sixth-largest player in Korea's cement market. This acquisition will clear the way for Hanil to leapfrog itself into Korea's largest cement company, bringing about change in the landscape of the nation's cement industry.
The state-run Korea Development Bank selected LK Partners as the prime negotiator for the acquisition of an 84.56-percent stake in Hyundai Cement which has been held by its creditors. Among major bidders, LK Partners made the highest bid of more than 600 billion won by enlisting the nation's third-largest cement company Hanil Cement as a strategic investor.
LK Partners won the bidding race by attracting a deep-pocketed partner, thereby raising the possibility that the M&A deal could end in a success. Hanil Cement is known to have more than 500 billion won in cashable assets. LK Partners and Hanil Cement plan to finance more than half of the acquisition fund by leveraging the PEF raised by LK Partners.