Samsung Securities tops acquisition financing tables

South Korea’s Samsung Securities secured first position in arranging acquisition financing in the first half of 2020, followed by the state-run Korea Development Bank (KDB).

According to thebell’s league tables, acquisition financing arranged by domestic financial firms totaled 9.86 trillion won ($8.2 billion) in 38 deals in the first half of 2020, compared to 11 trillion won in 36 deals in the same period last year.

The number of big-ticket deals fell in the first half. Two transactions worth over 1 trillion and two deals worth over 500 billion won were completed during the period. New acquisition financing deals accounted for 53% of the total, down from last year’s 57%. About 29% of the total deals were arranged by a single firm.

Thebell has decided to exclude the number of transactions when compiling its M&A acquisition financing league tables to ensure the accuracy of rankings from 2020.

Based on the new criteria, Samsung Securities topped the league tables in the first half of 2020 after securing ninth position in 2019. The securities firm arranged a total of five deals worth around 1.6 trillion won.

The largest deal that Samsung Securities worked on was Macquarie Asia Infrastructure Fund 2 (MAIF2)’s 1.5 trillion-won acquisition of Daesung Industrial Gases, arranging acquisition financing worth 633 billion won. Samsung Securities also jointly arranged a combined 520 billion-won acquisition financing for Macquarie PE’s purchase of its LG CNS stake.

The brokerage firm was hired by Kolmar Korea to lead an effort to refinance 480 billion won of debt dating to its acquisition of CJ Healthcare (now HK inno.N) in 2018. Back then Kolmar Korea raised 600 billion won to finance the acquisition and has repaid 60 billion won worth of debt each year through dividends for the last two years.

Samsung Securities also jointly arranged a 265 billion won acquisition financing for EMC Holdings and solely arranged Affinity Equity Partners’ 170 billion-won refinancing of Burger King.

KDB is closing in on Samsung Securities, arranging a total of eight deals worth about 1.4 trillion won. KDB arranged a 265 billion-won refinancing of loans taken out to finance Sampyo Corporation’s takeover of SAMPYO Cement in 2015 during the second quarter. It also arranged a 350 billion-won refinancing of Halla Cement. KDB also arranged financing for Glenwood PE’s acquisition of SKC Kolon PI. The state-run bank was a sole arranger of more than 70% of the deals it worked on during the first half of this year.

Mirae Asset Daewoo, which topped the league tables last year, came in third by arranging deals worth 1.2 trillion won. Major deals it worked on during the first half include Hahn & Company (Hahn & Co)’s 1.5 trillion-won refinancing of Ssangyong Cement Industrial, MBK Partners’ refinancing of NEPA and Macquarie PE’s acquisition of Daesung Industrial Gases.

Hana Bank secured the fourth position with its close partnership with Hahn & Co attracting keen attention. Hana Bank jointly arranged a 750 billion-won worth recapitalization of Hahn & Co’s portfolio company H-Line Shipping. The bank also arranged Hahn & Co’s acquisition of SK Chemicals’ biofuel business and refinancing of K Car.

NH Investment & Securities came in fifth, arranging six deals worth 1.13 trillion won. It arranged deals including refinancing of H-Line Shipping, acquisition financing for the SK Chemicals’ biofuel business and MBK Partners’ refinancing of Golfzon County. (Reporting by Hee-yeon Han)