[Courtesy of Bain Capital]
SEOUL -- Bain Capital, a global alternative investment firm based in Boston, has been selected as preferred bidder for a 20.05 percent stake held by Samsung C&T in a lucrative petrochemical unit of South Korea's Hanwha Group.
Samsung C&T, a construction and trading arm of South Korea's largest conglomerate, said in a regulatory filing on Thursday that Bain Capital was selected as the preferred bidder for its stake in Hanwha General Chemical, which manufactures purified terephthalic acid for the polyester industry.
Samsung SDI holds a 4.05 percent stake in Hanwha General Chemical, and market watchers have predicted that Samsung SDI would also sell its stake. The combined 24.1 percent stake held by the two Samsung units is valued at more than one trillion won (926 million US dollars).
Hanwha General Chemical was formerly known as Samsung General Chemicals before the Hanwha group took over in a deal with the Samsung group in April 2015.
Samsung C&T has been at the center of corporate restructuring pushed by the country's largest conglomerate. In 2015, Samsung C&T absorbed Cheil Industries, sparking speculation that the merger was aimed at accelerating the transfer of ownership from the group's ailing head Lee Kun-hee to his only son, Jay Y. Lee.
The son has struggled to streamline the group's portfolio since his father was hospitalized in May 2014. Samsung is now under pressure from regulators to improve corporate governance. With the sale of its stake in Hanwha, Samsung C&T can secure financial resources for investment in new growth engines.
reporter
Lim Chang-won
cwlim34@ajunews.com
