South Korea’s fledgling private equity firm Bayside won the exclusive rights to negotiate terms to buy Wellive Corp., meal service unit under Daewoo Shipbuilding & Marine Engineering Co. (DSME) in dire need of cash ahead of bonds maturing in April.
According to sources from the investment banking industry on Wednesday, DSME’s largest shareholder Korea Development Bank picked Bayside private equity as a preferred candidate to acquire the entire 100 percent stake in Welliv.
Should the negotiations fall through, the state lender would turn to its second choice, poultry food company Harim Group.
Market experts estimate the sale price to be around 70 billion won ($62 million).
Founded in 2005, Welliv provides meal, hospitality, security, and transportation services primarily for sea-going industry worldwide. The firm posted 12.6 billion won in operating profit on revenue of 221.7 billion won for full 2015. Welliv has delivered stable income through steady growth but is over-reliant on DSME’s affiliates.
By Yoo Tae-yang
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]