Korea's Q4 M&A pipeline packed with mega deals

The bumper M&A year for South Korea is yet to be over as the fourth-quarter calendar is packed with mega deals.

According to multiple sources from the investment bank industry on Wednesday, the final tender for an estimated 8 trillion won ($6.8 billion) deal over Hanon Systems, the country’s leading supplier of automotive thermal and energy management, will take place in the fourth quarter. Up for sale is 70 percent stake in the company – 50.5 percent owned by private equity firm Hahn & Company and 19.49 percent by Hankook Tire & Technology. Private equity firms The Carlyle Group and Bain Capital and multinationals Mahle of Germany, Valeo of France, and Nidec of France have been shortlisted earlier.

The auction for Hyundai LNG Shipping Co., Korea’s top liquefied natural gas tanker operator, is likely set for October. The deal involves a full stake owned by private equity funds IMM Private Equity and IMM Investment. Last month, KG Group and global private equity funds KKR submitted preliminary bids for full ownership in LNG Shipping worth between 1.5 trillion won and 2 trillion won

First-generation e-commerce names Danawa and Interpark are also up for grabs.

Price comparison website operator Danawa is readying preliminary auction for a 51.35 percent stake sale including 30.05 percent owned by its board director Sung Jang-hyun. The sale price is estimated at between 300 billion won and 500 billion won including management premium. Strong candidates are SK Telecom, Lotte, LG Uplus, KG Group, and private equity fund JKL Partners.

Contenders will vie for a 28.41 percent stake in shopping service provider Interpark owned by its CEO Lee Ki-hyung and specially related people.

Implant manufacturer Dio Implant is also looking for a new owner through a 30 percent stake sale worth up to 1 trillion won. Switzerland-based Straumann, world’s leading dental implant company, and other strategic investors are expected to go after the Korean company.

The sale of SsangYong Motor and facility management unit of S&I Corporation will also wrap up this year.

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