South Korea’s IMM Private Equity (IMM PE) has renewed search for a buyer for Hollys Food and Beverage Co (F&B), an operator of a local coffee shop chain Hollys Coffee, six years after it took over the company.

IMM PE has named a lead sale manager last year and is now contacting potential buyers, according to investment banking sources on Wednesday. The fund eying around 250 billion won ($168 million) from the deal reportedly has witnessed stronger interest from overseas “strategic” investors.

IMM PE acquired Hollys F&B in 2013 for 45 billion won via a 736.1 billion won worth blind fund it launched seven years ago and spent additional 37 billion won to up its stake ownership to 91.82 percent.

It tried to sell its majority stake in the coffee chain operator three years ago, but the attempt flopped due to price differences with potential buyers at home and abroad.

Following the failure, IMM PE has focused on upgrading Hollys F&B’s corporate value to place it back on the market for sale before the blind fund expires in 2020. It cashed out on some of its investment in the company through recapitalization in 2016 and 2017. The others in the fund investment portfolio, Taihan Electric Wire, Tailim Packaging and Tailim Paper have already been put up for sale.

Hollys F&B’s business performance has been improving recently, raising the possibility for a successful signing on the buyout deal. The company last year posted an operating profit of 16.3 billion won, up 6 percent from a year ago, with sales up 9 percent to 154.9 billion won. Its earnings have nearly doubled from 2013 when it reported an operating profit of 7 billion won on sales of 68.5 billion won.

By Kang Woo-seok and Lee Ha-yeon

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