South Korea’s leading game developer Netmarble Corp. posed as an unexpected candidate to buy out top rental company Woongjin Coway Co., whose value could reach 2 trillion won ($1.7 billion) in a three-way race.

According to investment banking sources on Thursday, Netmarble, China’s consumer electronics maker Haier and American private equity fund Bain Capital joined the tender over Woongjin Coway.

Four candidates had been shortlisted in early August, but two of them – SK Networks Co. that owns Korea’s another major home appliance rental service SK Magic and U.S. private equity fund Carlyle Group – bowed out.

Netmarble’s joining came as a surprise. The gaming giant is said to have offered 90,000 won to 100,000 won per share for the 25.08 percent stake put up for sale by Woongin Group, nearly matching the desired price from the seller, according to sources.

The rental company delivered a record high operating profit of 273.4 billion won on sales of 1.46 trillion won in the first six months this year, raising hope for a successful sale. But its shares have been hovering around 80,000 won, below the company’s desired price of 100,000 won apiece.

Netmarble could be a game-changer. Netmarble on Thursday said it has decided to bid for Woongjin Coway as part of its efforts to nurture new growth engines. Netmarble pins high hope on the so-called subscription economy, the business model of Woongjin Coway, an unknown company official said, hoping Woongjin Coway would become another cash cow to the company.

Netmarble has recently emerged as a major player in the merger and acquisition market, backed by its abundant liquidity.

Netmarble shares on Friday lost 3.53 percent to 92,800 won and Woongjin Coway fell 0.12 percent to 81,400 won.

Woongjin Coway hopes to name a preferred bidder early next week.

By Han Woo-ram and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]