Saemaeul Geumgo and ST Leaders PE Selected as Preferred Negotiators for Hyosung Capital Sale

[Asia Economy Reporter Hwang Yoon-joo] Hyosung Corporation announced on the 15th that it has selected ST Leaders Private Equity as the preferred negotiator for the sale of Hyosung Capital. White Whale Group (WWG) was chosen as the secondary negotiator.

Hyosung Corporation stated, "The most important considerations in selecting the preferred negotiator were the bid price, financing plan, and future management plan," and added, "We have informed ST Leaders PE and WWG of this decision."

According to the Fair Trade Act, the Hyosung Group must sell Hyosung Capital by the end of this year. As part of this, in 2018, Hyosung underwent a spin-off into four business divisions?Hyosung TNC, Hyosung Heavy Industries, Hyosung Advanced Materials, and Hyosung Chemical?under a holding company structure. Hyosung Capital must be disposed of by the end of this year, which is within two years from the holding company transition date (January 1, 2019).

Accordingly, Hyosung Capital initiated the sale process and reviewed the main proposal conditions of prospective buyers for two weeks after the final bidding. Hyosung Group plans to sign a stock purchase agreement (SPA) with Saemaeul Geumgo by the end of this month and complete the payment in November.