US PEF KKR expands footprint in Korean waste disposal via stake in TSK

2020.10.19 10:11:05 | 2020.10.19 10:11:53

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U.S. private equity fund operator Kohlberg Kravis Roberts & Co. (KKR) has purchased a 37.39 percent stake in South Korea’s water sewage treatment company TSK Corporation to command the second largest equity ownership.

SK E&C with 16.7 percent, Huvis with 16.52 percent and SK Discovery with 4.17 percent on Friday have agreed to hand over their shares in TSK Corp. to KKR, according to investment banking sources on Sunday. The combined 440.8 billion won ($385.9 million) would be paid by the end of the year.

TSK provides water sewage network services and operates other waste disposal facilities across the country. KKR would become its second-largest shareholder after Taeyoung E&C with 62.61 percent.

In August, KKR acquired the country’s medical waste disposal company ESG Group from Hong Kong-based PEF Anchor Equity Partners for 875 billion won. It now expects a greater synergy in their waste treatment business in Korea.

By Kang Woo-seok, Choi Keun-do and Lee Ha-yeon

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