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Macquarie to acquire additional stakes in Ulsan's Koentec
Date
2017.11.09
Views
411
According to Pulse by Maeil Business News Korea


Macquarie Group, an Australia-based global investment bank, will buy additional stake in the Ulsan-based waste management company Koentec, betting on rapid growth in Korea’s waste management industry.

Koentec announced Wednesday that its largest shareholder Green Energy Holdings fully owned by Macquarie will issue a tender offer for 5,500 won ($5) per share to acquire 31.51 percent, or 15,754,909 shares, of the company. After the acquisition, Green Energy Holdings will own a 71.98 percent stake in Koentec.

Koentec shares have been boosted in Seoul trading on the news. Shares of Koentec closed Wednesday at 5,420 won, up 21.93 percent from the previous session on the secondary Kosdaq market.

Macquarie intends to strengthen its management right over Koentec through the additional stake acquisition. It entered the local waste processing market in 2013 by taking over Dagil Co., a construction waste management service provider, and another waste disposal firm Jinju Indistry Co. in 2014. It also bought Korea’s food waste processing company Reclean Co. in January as it expects the investment in the local waste management industry would generate stable returns.

Macquarie bought a 33.63 percent stake in Koentec from Foosung HDS for 79.5 billion won in April, and later took over an additional 6.75 percent stake through a tender offer. Founded in 1993, Koentec is a dominant player in Yeongnam region comprising of cities of Ulsan, Busan and Daegu and North and South Gyeongsang Provinces.



By Chung Woo-sung and Choi Mira

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (Nov. 8, 2017)