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| Hanssem’s headquarters in Seoul / Courtesy of Hanssem |
By Park Jae-hyuk
IMM Private Equity (IMM PE) signed a memorandum of understanding with Hanssem, Wednesday, to acquire a controlling 30.21-percent stake in the nation’s top furniture company for around 1.5 trillion ($1.3 billion) from its founder and honorary chairman, Cho Chang-gul, and seven affiliated people.
While the seller did not hire an underwriter for the deal, the buyer has participated in the negotiations after hiring Samil PwC as a financial adviser.
Because their talks went public a day earlier, Hanssem’s stock price surged 24.68 percent during Wednesday’s session, closing at 146,500 won.
The 82-year-old founder’s decision was initially attributed to a lack of a successor. His only son died in 2012, and his three daughters and his daughter-in-law have stayed away from the company’s management. Some market observers cited the nation’s excessive inheritance tax as the main reason.
“Although the honorary chairman’s three daughters own 1.3 percent, 0.9 percent and 0.7 percent stakes in Hanssem, respectively, they have not participated in its management,” Yuanta Securities analyst Kim Ki-ryong said.
Hanssem has been managed by CEO Kang Seung-soo since last year. His predecessor, Choi Yang-ha, who had led the company since 1994, stepped down after a controversy over sexual harassment in the workplace.
The furniture company, however, told its employees after Wednesday’s top executives’ meeting that the founder’s latest decision was intended to promote public interests.
“The honorary chairman has looked for an investor who recognizes our company’s vision and future value,” the company said in a press release. “IMM PE was viewed as a proper partner to maintain the stability of our management and help our long-term growth.”
Cho announced in 2015 that he would donate 2.6 million shares to the company-owned non-profit foundation. He has donated 1.66 million shares so far, and plans to donate the remaining shares after closing the deal.
IMM PE is expected to try to create synergy between Hanssem and Oheim, an online furniture seller owned by IMM Investment, the private equity firm’s affiliate.
“Oheim will be able to secure buyers and Hanssem will be able to reinforce its online channel,” Shinyoung Securities analyst Park Se-ra said.
A high-ranking official of the private equity industry said that it will take a couple of months for IMM PE to conduct its due diligence.
“The closing of the deal will be at the end of this year, because they have to undergo administrative procedures, including an approval from the antitrust regulator,” he said.
IMM PE to acquire Hanssem
Source: Buhay Kapa PH
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