South Korea’s IMM Private Equity (IMM PE) has selected KB Securities and KB Kookmin Bank to arrange financing for its purchase of Kolmar Korea’s pharmaceutical business.
The PE firm is currently negotiating the final price with the seller, Kolmar Korea Holdings, sources familiar with the matter said on April 29.
IMM PE has outlined funding plan for the acquisition. The PE firm plans to fund around 50 percent of the acquisition price by using acquisition financing, which will be jointly arranged by KB Securities and KB Kookmin Bank. The amount of the acquisition financing may vary depending on the final price.
Separately, the PE firm is likely to fund the remaining amount through its flagship fund RoseGold 4, whose fund size is more than two trillion won.
Kolmar Korea Holdings has agreed to sell Kolmar Korea’s pharmaceutical unit and its entire stake in Kolmarpharma to IMM PE for 750 billion won. Kolmar Korea Holdings and IMM PE are expected to sign a stock purchase agreement in the near term.
KB Securities and KB Kookmin Bank have reportedly been hired as arrangers by providing debt financing with attractive terms. IMM PE is said to have targeted Kolmar Korea’s pharmaceutical business assets because of the business model, in which Kolmar Korea offers contract manufacturing services to local pharmaceutical companies.
The latest deal is expected to help KB Securities build a solid track record. The brokerage firm arranged acquisition financing of several deals worth multi trillion won, including Macquarie Asia Infrastructure Fund’s acquisition of Daesung Industrial Gases and Macquarie Korea Opportunities Management (Macquarie PE)’s acquisition of a stake in LG CNS. KB Kookim Bank also jointly arranged acquisition financing for the LG CNS deal. The lender arranged acquisition financing of IMM Investment’s one trillion won investment in U.S.-based Texas Express Pipeline at the end of last year. (By reporter Kim Hye-ran)