A newly established private equity firm Bayside PE was named as the preferred bidder for the acquisition of Welliv, a subsidiary of Daewoo Shipbuilding & Marine Engineering.
According to Korea Development Bank and the lead manager Samjeong KPMG on March 15, Bayside PE was selected as the preferred bidder for the Welliv deal. If the deal with Bayside PE ends in a rupture, Harim Group would be given a chance to acquire Welliv. The food catering operator is expected to be sold at a price of about 70 billion won.
Welliv, founded in 2005, is the 100-percent owned subsidiary of Daewoo Shipbuilding. The company, engaged mainly in food catering and resort business, also runs some expressway service areas and food business.
It posted sales of 221.7 billion won last year, with its operating profit estimated at 12.6 billion won. Some analysts said, “Welliv is one of cash cow assets among those held by Daewoo Shipbuilding. One risk, however, is that it relies heavily on Daewoo subsidiaries.”