Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Anchor Equity takes over Metanet Mplatform despite union opposition
The headquarters of Metanet Group located in central Seoul / Courtesy of Metanet Group
By Anna J. Park
By Anna J. Park
Hong Kong-based private equity firm (PEF) Anchor Equity Partners is set to complete its acquisition of Metanet Mplatform ― a local outsourcing call center business ― early next month.
Anchor Equity already owned a 43.6 percent stake in the call center that it acquired in 2012. In late September, the PEF decided to purchase the remaining shares held by Metanet Group's Chairman and CEO Choi Young-sang for around 200 billion won ($170 million). The two parties are slated to close the deal next month.
Metanet Mplatform is scheduled to hold a temporary shareholder's meeting Nov. 8 to discuss matters related to the acquisition. After Anchor Equity Partners takes ownership, the call center company's management may also be set to face changes. In particular, the Chief Financial Officer (CFO) is expected to be replaced by the PEF.
Metanet Mplatform is the country's leading call center business operator with 8,000 staff working in over 30 centers around the country. The company posted annual revenue of 348 billion won last year, with an operating profit of 15.8 billion won.
Anchor Equity expects the call center outsourcing business will increase its profits as the impact from the COVID-19 pandemic dwindles. The PEF aims to seek opportunities for a re-sale or listing of the firm when the economy improves.
Some watchers expect a string of major M&As could take place in the local call center market, given that another PEF Affinity Equity also acquired UBASE, another major call center in late 2018. Considering the market share held by the top three center operators ― Metanet Mplatform, UBASE and Hyosung ITX ― only accounted for 16 percent, there's a big possibility that further M&As could follow as a bolt-on strategy for the PEFs.
While Anchor Equity Partners is keeping an eye on maximizing profits through acquisitions, Metanet Mplatform's union released a statement, harshly criticizing the deal.
The statement released through the Korea Finance & Service Workers' Union earlier this week claimed that the massive profits accrued by both Anchor Equity and Metanet Group CEO Choi Young-sang through the deal came mainly from grinding down call center staff, arguing that workers should be given a greater share of profits including those made from the deal.
The union also expressed concerns over PEFs' growing presence in the outsourcing call center business in Korea, saying the local market is likely to undergo large-scale restructuring at the cost of labor exploitation. The union expressed their objection to any attempts at staff restructuring.