KB Securities has successfully raised money from investors to back a fund formed to acquire Korea Environment Technology (Koentec), industry sources said.
IS Dongseo and E&F Private Equity (E&F PE) completed the takeover of Koentec from Macquarie Korea Asset Management for 500 billion won ($420 million) on September 1. E&F PE invested 200 billion won, or 40% of the acquisition cost, from its fund dedicated to the deal.
The fund, launched shortly after the deal was signed in June, was underwritten by KB Securities and was fully syndicated to institutional investors for two months.
KB Securities has also arranged debt financing for some notable deals in South Korea this year. It provided loans worth 420 billion won and 130 billion won respectively to back the 2.5 trillion-won takeover of Daesung Industrial Gases and the 1 trillion-won acquisition of a minority stake in LG CNS by Macquarie Korea Asset Management. Both were later securitized and entirely sold to investors.
KB Securities is said to focus on financial performance and credit quality of acquired companies as well as market conditions when making decisions on financing deals. Daesung Industrial Gases, LG CNS and Koentec were all high quality assets.
KB Securities has also been selected to arrange loans to back IMM Private Equity’s planned acquisition of the pharmaceutical operations of Kolmar Korea Holdings, which will help raise the firm’s ranking in the second half of the year. The amount of financing has not been decided because the deal is still under negotiations. (Reporting by Hye-ran Kim)