Failed Sale of Management Rights of SCI Pyeongga Information

Completion of 8-Month M&A Process
Strategic Shift Through Collaboration and Strengthening Competitiveness with Strategic Partners

The management rights sale deal of SCI Pyeongga Information has been ultimately canceled. Although a merger and acquisition (M&A) process had been underway since July last year, the parties failed to narrow their differences with the acquisition candidates in the recent final bidding.

According to the investment banking (IB) industry on the 12th, negotiations between the seller and buyers broke down during the final bidding for SCI Pyeongga Information's M&A. An IB industry official stated, "We proceeded with an in-depth sale process by extending the due diligence period for the consortium narrowed down to 2-3 groups, but the negotiations did not succeed."

The sharp differences between the two sides reportedly involved the valuation of the credit information business license and perspectives on last year's profitability decline. Additionally, the recent economic downturn, which worsened market liquidity and increased funding costs, was cited as a factor that made bold decision-making difficult for the buyers.

A senior official of SCI Pyeongga Information said, "We will conclude the M&A process initiated last year for the time being and steadily execute the business plans we have prepared." Although the M&A was canceled, the company plans to enhance synergy effects by strengthening strategic partnerships with business unit partners newly identified during the M&A process.

The official added, "We will soon announce plans related to strengthening the company's competitiveness and restructuring the business framework."