MBK Partners raises $340 mn by selling partial 5% stake in Coway

2017.05.16 14:18:28 | 2017.05.16 15:33:04

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South Korea’s private equity firm MBK Partners sold a 5 percent stake in the nation’s leading consumer health appliance rental and service company Coway Co. in a block deal on Monday, recouping about 380 billion won ($340 million), part of its initial buyout investment in the company.

According to the investment banking industry on Tuesday, MBK Partners sold a 5 percent stake out of its total 31.5 percent stake in Coway at 98,000 won per share to institutional investors at home and abroad in a block trade after the market closed on Monday. Total amount it has successfully recollected reached about 380 billion won.

MBK Partners owns Coway stakes through Coway Holdings, a special purpose company formed to take over the health appliance rental service company for 420 billion won in 2013. Even after the latest stake sale, it has remained as the largest shareholder of Coway with a 26.5 percent stake.

Shares of Coway closed Tuesday at 99,100 won, down 5.62 percent or 5,900 won from the previous session.

“The stake sale attracted many institutional investors amid eased concerns over nickel contamination in the company’s water purifiers and growing expectations for earnings improvement,” said a source from the investment banking industry. Last year, Coway recalled its three water purifier models that had been found to have nickel particles coming off from ice makers.

MBK Partners has been speeding up efforts to recollect its original buyout investment by selling its stakes and debts backed by its stakes in Coway since it failed to sell off the company. Last month, it succeeded in refinancing 1.35 trillion won loans to institutional investors.

By Kang Doo-soon

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