Hahn & Co. stays out of SK ecoplant deal, despite close relations

SK ecoplant's logo

By Park Jae-hyuk

Hahn & Company is not expected to participate in a bid to acquire parts of SK ecoplant's plant construction division, despite the private equity firm's (PEF) solid relationship with SK Group, according to industry sources, Monday.

Instead, a consortium of Ium Private Equity and Mirae Asset Global Investments has been mentioned as the strongest candidate to take over the builder's chemical engineering and thermal power plant businesses, for about 500 billion won ($432 million).

Since the construction unit of SK Group first hinted at its intention to sell those businesses by confirming earlier this month that it is considering spinning some of its businesses off, Hahn & Company had been initially regarded as a potential buyer, considering a series of transactions it made previously with SK affiliates.

Sources familiar with this issue, however, said that Hahn & Company is actually not interested in the deal, while the Ium-led consortium is about to reach an agreement with SK ecoplant.

SK ecoplant is said to be holding a board meeting next month as well as a general meeting of shareholders at the end of this year to finish spinning parts of its plant construction businesses off and to sell a controlling stake in the spun-off company.

The construction firm seems to be willing to continue operating its semiconductor, data center and nuclear power plant businesses in order to keep the group's trade secrets confidential, according to industry sources.

Ium has a track record of signing deals with SK Ecoplant previously, when the builder was known as SK Engineering & Construction (E&C). The medium-sized PEF had invested 160 billion won in 2015 in SK TNS, an ICT infrastructure company that was spun off from SK E&C, and made a successful divestment last year.

Once SK ecoplant completes its planned spin-off, some 1,200 employees will be transferred to the spun-off company, reducing SK ecoplant's debts, so that it can better pursue its initial public offering and make larger investments in renewable energy.