The sale of ECORBIT, which is considered the key element in the normalization of Taeyoung Engineering & Construction, is gaining momentum with the selection of lead managers. UBS and Citigroup Global Markets Securities, two global investment banks (IBs), have been assigned the task.
According to sources in the investment banking industry and media reports on Jan. 30, Taeyoung Group and KKR, each holding a 50 percent stake in ECORBIT, have notified the appointment of the two lead managers for the sale. Samjong KPMG will be in charge of the sales accounting advisory, and Kim & Chang will handle the legal advisory for the sale.
Taeyoung Group has announced a self-rescue plan to support Taeyoung E&C, which is facing financial difficulties and entering a workout situation. As part of the plan, Taeyoung Group intends to provide financial support to Taeyoung E&C using the proceeds from the sale of ECORBIT.
ECORBIT was formed in 2021 as a result of the merger between Taeyoung Group’s TSK Corporation and KKR’s ESG Group. It is recognized as the leading comprehensive environmental company in South Korea, encompassing waste incineration, landfill, and water treatment operations.
The estimated annual Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the past year is approximately 250 billion won, contributing to an overall valuation of around 3 trillion won. The selling party plans to initiate the formal sales process by March and aims to conclude the proceedings in the latter half of this year.
Currently, mega global private equity firms specializing in infrastructure investment, such as EQT Partners, BlackRock, Macquarie PE, and GIP, are mentioned as likely leading candidates for the acquisition of ECORBIT.