NPS mulls investing 500 bil. won in MBK Partners

The National Pension Service (NPS) is considering investing 500 billion won ($440.9 million) in MBK Partners Ltd., a leading local private equity fund in an apparent bid to support the fund's latest acquisition deal, market sources said Tuesday.

The state-run pension manager has reportedly been taking steps to initiate the investment and made a substantive decision over the amount it will invest and means to do it, a brokerage official said, asking not to be named.

Lee Chan-woo, the head of NPS fund management, confirmed that "it is under consideration," adding the NPS will only be taking part as a financial investor (FI) and it has no purpose of being involved in the management."

Another NPS official said, "We are still waiting on the final approval and the investment figure is subject to change during the process."

Market analysts view the NPS's investment as a way of trying to help the private equity fund secure funds to close the acquisition of Woongjin Coway Co., a local water purifier maker.

In August, Woongjin Holdings Co., the parent company of the water purifier, said it will sell a controlling stake of 30.9 percent, or 1.09 trillion won ($926.9 million), to MBK Partners, as part of an effort to improve its financial health. The deal is due to be completed in late September.

With the investment by the NPS, uncertainties over the private equity fund's capability to acquire Woongjin Coway will likely fade, market analysts said.

The NPS is the world's fourth-largest pension fund with its total fund under management standing at 367 trillion won as of April. (Yonhap)