KKR buys $386 mn stake in Korean sewage disposal firm
Oct 19, 2020 (Gmt+09:00)
KKR & Co. has purchased a combined 440.8 billion won ($386 million) worth of shares in TSK Corp., a leading South Korean sewage and wastewater treatment firm, from three Korean companies, following a 875 billion won deal to buy two other Korean waste management companies in August.
With the investment, the US private equity giant will own a combined 37.4% stake in TSK Corp., becoming its second-largest shareholder, according to regulatory filings by each of the three Korean companies on Oct. 19.
Under the latest deal, KKR is purchasing 16.7% of TSK from SK Engineering & Construction Co., a 16.5% stake from synthetic fabrics maker Huvis Corp. and 4.2% from SK Discovery Co. Taeyoung Engineering & Construction Co. is the largest shareholder of TKS Corp. with a 62.61% stake.
The deal involved three companies as SK Engineering exercised its drag-along rights under which the other two stakeholders are obliged to sell their stake. The companies said in the filings they are selling their stake as part of efforts to offload non-core assets.