Global Sae-A goes after Ssangyong E&C under ICD

[Photo by Ssangyong E&C]

Ssangyong E&C may turn to Korean capital as M&A-active Global Sae-A Group is bidding for the controlling stake held by the Investment Corporation of Dubai (ICD).

According to the M&A industry on Thursday, Global Sae-A Group submitted a letter of intent (LOI) for the acquisition of Ssangyong E&C.

Global Sae-A is the largest shareholder of Sae-A Trading, the world’s largest manufacturer and exporter of apparel. It also has over 10 subsidiaries including top paper production company Taerim Paper, a global engineering, procurement and construction (EPC) company Sae-A stx Entech, and an eco-friendly energy company Valmax Technology. Global Sae-A’s consolidated revenue amounted to 4.2 trillion won ($3.3 billion) last year.

ICD is said to have conditioned a recapitalization that is bigger than the acquisition price.

Global Sae-A Group has operations in 10 countries and hopes to add Ssangyong E&C’s 7 trillion won worth of orders to enhance its global market presence, construction, and technology.

The parties hope to close a deal in July or August.

“We will be able to make a foray into the Latin America market where Sae-A Group has already made entered and provide various financial resources and investment in infrastructure businesses such as railways, roads, and city development,” said an official from Ssangyong E&C.

Global Sae-A Group has set a sales target of 10 trillion won and an operating profit of 1 trillion won in 2025

After the collapse of Ssangyong Group, Ssangyong E&C was sold to IDC in 2015 and was expected to make strides in its overseas construction business, especially with the nine construction deals in Dubai worth $2.3 billion but ultimately struggled due to the lack of overseas construction opportunities amid the Covid-19 pandemic and the economic downturn in Dubai.

Ssangyong E&C’s revenue last year totaled 1.4 trillion won and suffered an operating loss of 110.8 billion won in areas such as the overseas construction business. As of last year, it ranked 30th in construction capability according to the Ministry of Land, Infrastructure, and Transport.

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