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Reuters – Woongin Conway Deal Halted

Woongjin Holdings said the sale of water purifier maker Woongjin Coway to local private equity fund MBK Partners was “halted” after the holding company filed for court receivership earlier on Wednesday, throwing the $1.1 billion deal into question, Reuters reported Wednesday. Woongjin Holdings is Woongjin Coway’s largest shareholder with a 28.4 percent stake. MBK Partners agreed to pay 1.2 trillion won ($1.1 billion) for a combined 31 percent stake in Woongjin Coway in August.

 

(Reuters) – Woongjin Holdings said the sale of water purifier maker Woongjin Coway to local private equity fund MBK Partners was “halted” after the holding company filed for court receivership earlier on Wednesday, throwing the $1.1 billion deal into question.

 

Woongjin Holdings is Woongjin Coway’s largest shareholder with a 28.4 percent stake. MBK Partners agreed to pay 1.2 trillion won ($1.1 billion) for a combined 31 percent stake in Woongjin Coway in August.

 

The deal was expected to be one of the largest private equity-led deals in Asia this year.

 

MBK had been due to complete payment in a few days, sources familiar with the deal said.

 

Officials at Woongjin Holdings, Woongjin Coway and MBK Partners did not immediately respond to requests for comment.