Koreas Woongjin To Buy Additional Coway Shares From GIC For $266m

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Coway

South Korea’s Woongjin Group will purchase additional shares of air and water purifier producer Coway, worth up to 300 billion won ($266 million), from Singapore’s GIC.

The transaction will be implemented in tranches, and is expected to complete by September, Woongjin ThinkBig, the education service unit of Woongjin Group, said in a regulatory filing.

Woongjin ThinkBig will first buy a 1 per cent stake in Coway from GIC through over-the-counter trading this month.

The Singapore sovereign fund is currently the second largest shareholder in Coway with a 7.35 per cent stake.

In a bid to take control over the water and air purifier company, Woongjin said it had to acquire more than 30 per cent shares of Coway under legal requirements.

In October last year, Woongjin announced that a consortium of Woongjin ThinkBig and STIC Investment will buy 22.17 per cent of Coway for 1.68 trillion won. It had sold a 30.9 per cent interest and management rights of the subsidiary to MBK Partners in 2013.

The buyback from MBK Partners will be completed by March 22.

After gaining control of the business, Woongjin will resume the Woongjin Coway brand name.

Coway has a market capitalisation of around $6 billion. In 2018 fiscal year, the firm earned a net profit of $309 million.

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