Kumho Resort received binding offers from all of its shortlisted contenders in the final round of bidding on Tuesday (January 19) and is expected to pick the preferred bidder as early as this month, industry sources reported.
Kumho Petrochemical, Fine Investment Corporation, VI Investment, Line Construction and Consus Asset Management reportedly offered their preferred deal structures and terms and conditions. They are said to have offered 200 billion won ($182 million) for the resort, which a source said had been lowered after a detailed due diligence.
Most of the bidders have been attracted to Kumho Resort’s Asiana Country Club (Asiana CC) golf course from the beginning of the sale process. Strategic and financial investors are reportedly keen to finish the race to take over the golf course.
Some of the shortlisted bidders have been considering a possible value-added strategy through the acquisition. “The condominiums at Kumho Resort are so old that a large-scale renovation is needed,” said an industry source, adding, “A bidder which formed a consortium to take over the resort has planned a possible bolt-on strategy.”
It has been reported that financial investors approached major strategic investors with experience in operating condominium businesses to form partnerships in acquiring Kumho Resort. Some bidders were discussing partnerships with other companies right until the deadline for the final round of bidding.
Kumho Resort’s four condominiums, three waterparks, Asiana CC and Weihai Point Hotel & Golf Resort are for sale. (Reporting by Sun-young Kim and Byung-yoon Kim)