Ed Note: A previous version of this story misattributed the ownership structure of Hillhouse Capital. The article was edited on Nov. 6, 2023.
Private equity fund (PEF) manager Hillhouse Capital is actively pursuing the acquisition of SK eco prime, the leading biodiesel company in South Korea.
According to recent reports in the investment banking industry, Hillhouse Capital has initiated the final negotiations to acquire the entire 100 percent stake held by Hahn & Company in SK eco prime. The transaction price is estimated to be in the range of approximately 400 billion to 500 billion won (US$300.08 million to 375.09 million).
Hahn & Company decided to sell the company last year and selected Goldman Sachs as the lead advisor to negotiate the deal. Hillhouse Capital, on the other hand, entrusted KB Kookmin Bank with the exclusive financial advisory role and has also completed the capital procurement.
SK eco prime’s predecessor was SK Chemical’s bioenergy division, which Hahn & Company acquired for 382.5 billion won in 2020. Hahn & Company concluded the acquisition using a 3.8 trillion won blind fund it had established.
SK eco prime demonstrated a notable improvement in its financial performance last year, achieving sales of 829.3 billion won and an operating profit of 84.2 billion won. This represents a substantial increase from the previous year when the company reported sales of 574.9 billion won and an operating profit of 41.7 billion won.