A consortium led by Taekwang Industrial Co. is set to sign a definitive agreement to acquire a controlling stake in Aekyung Industrial Co. from AK Holdings Co. and Aekyung Asset Management Co. for 470 billion won ($331 million), one of this year’s largest consumer goods deals in South Korea.
The transaction will see Taekwang and its partners acquire 63% of Aekyung Industrial’s shares, with closing expected in January, people familiar with the matter said on Monday.
According to investment banking sources, Taekwang Industrial and AK Holdings held board meetings earlier on Monday to approve the deal.
The agreement will be signed between AK Holdings and a consortium comprising Taekwang Industrial, T2 Private Equity and Yuanta Investment Co. by Tuesday at the latest.
WITH AEKYUNG UDNER ITS WINGS, TAEKWANG LOOKS TO K-BEAUTY BOOM
The deal was originally expected to be completed by Oct. 15, but talks were prolonged as AK Holdings sought additional internal review of key transaction terms, sources said.
AK Holdings had been seeking to divest the 63% in Aekyung Industrial, best known for household brands such as Luna cosmetics and Trio detergents.
The Taekwang-led consortium was selected as the preferred negotiator last month following a competitive auction run by Samjong KPMG, the sale’s financial adviser.
The agreed price values Aekyung Industrial’s shares at about 28,000 won apiece, an 86.9% premium to the company’s closing price of 14,980 won on Oct. 17.
With Aekyung Industrial under its wings, Taekwang is expected to accelerate its foray into the cosmetic sector, which it sees as a core growth engine beyond its struggling chemical and textile businesses.
In July, Taekwang said it would invest 1.5 trillion won by 2026, including 1 trillion won for this year, to expand into cosmetics, real estate development and energy businesses as its future growth drivers.
By Jong-Kwan Park
pjk@hankyung.com
In-Soo Nam edited this article.
