Multiple bidders have joined the competition to take over Korea’s top boxing material makers Tailim Packaging and Tailim Paper, raising prospects for a final deal that could near $1 billion amid heated demand for boxing due to e-commerce.

Industry rival Hansol Paper and Shindaeyang Paper are among the contenders for a 70.1 percent stake in Tailim Packaging and a full stake in Tailim Paper, together with private equity funds based at home and abroad, according to sources on Wednesday.

Local private equity IMM PE, their largest stake holder, is reportedly seeking at least 1 trillion won ($844 million) to cash in more than triple of what it had paid for the companies. Morgan Stanley leads the sale. IMM PE bought a 58.9 percent stake in Tailim Packaging and a 34.54 percent stake in Tailim Paper at 350 billion won in 2015.

The duo has been drawing much attention from investors on growing demand for packaging materials such as paperboard and Styrofoam in line with the burgeoning online and mobile e-commerce market. The operating profit of Tailim Packaging grew more than tenfold last year, and Tailim Paper up 175 percent. They are currently the market leader in Korea.

The seller hopes to receive final bids in August with an aim to complete the sale within the year.

By Gwon Han-wul and Lee Ha-yeon

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