By Park Hyong-ki
Global private equity funds are expected to dive into a bidding competition to acquire ADT Caps, a local security service provider, from their peer Carlyle's Asia buyout fund, according to industry sources and news reports.
It has been reported that Affinity, Macquarie and CVC Capital expressed their intent to buy ADT last week, with a preferred bidder to be chosen by next month.
Morgan Stanley is handling the ADT sale for Carlyle, which sources say could cost more than 3 trillion won given ADT's attractive market status.
It is Korea's second-biggest security company with a 30 percent market share.
The biggest security service provider is S-1, a part of Samsung Group, which has a 50 percent market share here.
Japan-based SECOM has a 25.65 percent in S-1, while Samsung SDI has an 11 percent stake. Other shareholders include the National Pension Service and Samsung Life Insurance, according to S-1's financial statements.
KT Telecop, a KT subsidiary, is the third-biggest security company in the nation and the only Korean company.
These three big companies dominate the local security market, with SECOM "practically installed" at most major public and private places here, an industry source said.
Carlyle acquired ADT Caps in 2014 through an investment company from Tyco Far East Holdings, part of Tyco, an Ireland-based security system company.
This acquisition also included ADT's two subsidiaries, according to ADT Caps' 2016 audit report.
ADT Caps posted an operating profit of 135.8 billion won in 2016, up from 122.5 billion won the previous year.
It has a positive cash flow from its core security operations, with a negative cash flow from its investment activities and financing.
This indicates the company is mostly financing its investments with money coming in from sales, while also meeting its debt obligations with internal funds, instead of refinancing its debts through bank loans.
Global private equity funds are expected to dive into a bidding competition to acquire ADT Caps, a local security service provider, from their peer Carlyle's Asia buyout fund, according to industry sources and news reports.
It has been reported that Affinity, Macquarie and CVC Capital expressed their intent to buy ADT last week, with a preferred bidder to be chosen by next month.
Morgan Stanley is handling the ADT sale for Carlyle, which sources say could cost more than 3 trillion won given ADT's attractive market status.
It is Korea's second-biggest security company with a 30 percent market share.
The biggest security service provider is S-1, a part of Samsung Group, which has a 50 percent market share here.
Japan-based SECOM has a 25.65 percent in S-1, while Samsung SDI has an 11 percent stake. Other shareholders include the National Pension Service and Samsung Life Insurance, according to S-1's financial statements.
KT Telecop, a KT subsidiary, is the third-biggest security company in the nation and the only Korean company.
These three big companies dominate the local security market, with SECOM "practically installed" at most major public and private places here, an industry source said.
Carlyle acquired ADT Caps in 2014 through an investment company from Tyco Far East Holdings, part of Tyco, an Ireland-based security system company.
This acquisition also included ADT's two subsidiaries, according to ADT Caps' 2016 audit report.
ADT Caps posted an operating profit of 135.8 billion won in 2016, up from 122.5 billion won the previous year.
It has a positive cash flow from its core security operations, with a negative cash flow from its investment activities and financing.
This indicates the company is mostly financing its investments with money coming in from sales, while also meeting its debt obligations with internal funds, instead of refinancing its debts through bank loans.
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