South Korea’s top real estate asset management firm IGIS Asset Management Co. plans to sell a controlling stake owned by the heirs of the company’s late founder and some major stakeholders.
According to investment banking sources on Thursday, Son Hwa-ja, IGIS Asset’s top shareholder and the late founder Kim Dai-young’s wife, put her 12.4% stake up for sale.
She hasn’t been involved in the management of the firm since her husband’s death.
The seller recently appointed Morgan Stanley as its advisor to oversee the sale process.
If other interested key shareholders exercise their tag-along rights, more than 24% of IGIS Asset’s shares could be on the block, sources said.
Those stakeholders with tag-along rights include Hyundai Motor Securities Co., which holds a 6.59% stake in IGIS, and Korea Real Estate Investment & Trust Co., which owns 5.31%.
Major shareholders without tag-along rights are construction firm Woomi Global Co., which owns 9.08%, and real estate investor and builder Kumsungbaekjoe with 8.59%.
IGIS Asset’s estimated enterprise value is between 800 billion won and 1 trillion won ($550 million-$687 million), based on a 100% equity valuation.
KEY STAKEHOLDERS NOT INTERESTED
Some key stakeholders, including IGIS Asset’s Senior Managing Partner Cho Kab-Joo and Daishin Financial Group, are opting out of the deal, raising the possibility of future disputes with the new owner, sources said.
Cho holds an 11% stake through a personal investment vehicle, while Daishin Financial Group owns 11.3% through two affiliates – 8.2% by Daishin Securities Co. and 3.1% by Daishin F&I Co., a bad bank.
“While I am not participating in this sale, any stake transfer should be made in a way that contributes to the company’s long-term growth,” Cho said.
Founded by the late Kim, a former deputy minister of the Minister of Land, Infrastructure and Transport, IGIS operates a fund of 66.8 trillion won ($45/8 billion) in assets under management (AUM).
One of the largest real estate firms in Asia, IGIS Asset has rapidly expanded its presence through acquisitions of prime offices, retail, logistics centers and houses. It manages more than a hundred properties in Asia and dozens in Europe and North America.
It posted 73 billion won in net profit in 2024, up nearly 50% from the previous year.
By Jun-Ho Cha and Gyeong-Jin Min
chacha@hankyung.com
In-Soo Nam edited this article.
