Korea Environment Technology Co. (Koentec) is up for sale in a deal that could fetch up to 1 trillion won ($730.4 million) with global private equity firms aiming to acquire the country’s largest waste management company, investment banking industry sources said on Monday.
A consortium between Seoul-based E&F Private Equity and IS Dongseo Co. selected four qualified bidders — two global private equity firms and two strategic investors whose businesses are similar to Koentec’s — to sell a 100% stake in the company.
The seller plans the main bidding as early as the end of August after due diligence with a schedule to select a preferred bidder in September to complete the sale this year.
UBS and EY Hanyoung, the South Korean partner to Ernst & Young Global Ltd., manage the deal.
The consortium increased its stake in Koentec to 86.3% through a tender offer and completed a comprehensive share swap for the remaining shares for the company’s delisting.
TO SELL ONLY KOENTEC
Koentec operates the largest industrial waste incineration facility in South Korea with a capacity of 463 tons a day. Its operating profit fell 11.3% to 30.5 billion won in 2024 although sales rose 2.2% to 80.5 billion won.
E&F and IS Dongseo acquired a 59.29% stake in Koentec for 421.7 billion won in 2020.
The consortium had considered selling Koentec together with its related portfolio companies – Core Energy Technology Co. and Cleantech Co., the parent of waste fuel recycling firm KR Energy Co. – in a package deal. The seller decided to unload only Koentec, however.
The consortium took over the entire stake in Core Energy Technology for 540 billion won in 2022.
By Jon-Ho Cha and Da Eun Choi
chacha@hankyung.com
Jongwoo Cheon edited this article.
