The Goldman Sachs-backed South Korean Daesung Industrial Gases are looking to sell the company for around $1.4 billion and will receive preliminary bids at the start of next month.
Daesung Group own around 45 percent of the company with Goldman owning most of the remainder. A representative of Daesung Group said the company is looking to reduce their own debt significantly and are therefore motivated to offload their share in the gas unit.
No-one at Goldman Sachs was available to comment on the news. The American multinational investment company own their stake in Daesung through their investment subsidiary CTI China Renaissance.
An EBITDA of around 150 billion won will be held this year which gives a valuation of 1.5 trillion won to the 100 percent sale of Daesung. According to anonymous sources close to the deal, over 15 separate interested parties have been made aware of the specifics of the sale.
In a $350 million deal 2-years ago, Daesung Group sold around a 70 percent stake in the gas firm to a Goldman-led consortium.
Daesung currently holds 30 percent of the South Korean industrial and special gases market and is among the top three producers in the country. Their products, mainly oxygen and nitrogen-based, are used in a variety of applications across a whole spectrum of sectors including the medical, refining and petrochemicals industries.
According to company documentation, Daesung’s largest customers include LG Chem, SK Hynix and LG Display among others.
Daesung’s board are expected to make an announcement on first round bids on December 4th and have an offer for their shareholders by the end of the first quarter of 2017.
