IMM Private Equity (IMM PE) has sold down its stake in Taihan Electric Wire to 40% through a block deal in a bid to sweeten the sale of the South Korean cable maker.

The block transaction on February 23 was decided after discussions with potential buyers, industry sources said. Last week four suitors – including Hoban Construction, Global Sae-A and Bain Capital – were chosen to advance to the next round of bidding for Taihan Electric Wire, and have started a due diligence process.

This is the fifth sell-down of the firm’s shares by IMM PE after the Seoul-based firm reduced its stake from 75% to 50% in four block deals over the last two years. Potential buyers would not want to buy a majority stake because less than 50% of the company would be good enough to have control of Kospi-listed Taihan Electric Wire, industry watchers said.

Creditors, which have the tag-along right, also took part in IMM PE’s recent block sale to reduce their combined stake in the company from 17% to 14%.

Taihan Electric Wire shares were down more than 20% after the block deal and recently traded at 983 won ($0.88). IMM PE’s 40% stake in the company is now estimated to be worth between 400 billion won and 500 billion won, including a control premium.

The company is one of a handful of underwater cable manufacturers in the world. The underwater cable business is expected to benefit from the rapid rise of offshore wind energy, which Taihan Electric Wire sees as a major source of future revenue growth. It announced a plan last month to build a new plant to expand the offshore wind business.

Credit Suisse is acting as financial advisor to IMM PE. (Reporting by Si-eun Park)