S&I Corporation's sale process attracted global private equity firms including Blackstone, Warburg Pincus, and Orix in preliminary bidding last month, with the expected sale price reaching around 900 billion won. JP Morgan, the sale advisor, conducted the preliminary bidding process, and potential acquirers are expected to participate in final bidding by the end of this month following due diligence. The building management company's stable revenue stream from managing LG and GS Group properties has drawn interest from major global PE firms.
Global PE Firms Participate in S&I Corporation Preliminary Bidding
Blackstone, Warburg Pincus, and Orix participated in the preliminary bidding for S&I Corporation last month. Warburg Pincus manages funds totaling 125 trillion won globally and specializes in real estate and infrastructure investments. The firm has nearly 20 years of investment history in Asian real estate companies and platforms. In 2023, Warburg Pincus was selected by the Government Employees Pension Service for its first overseas PE management mandate.
Macquarie Asset Management acquired a 60% stake in the company, then named S&I Expert, for 360 billion won in 2022 and changed it to its current name. The company's main business involves building management for LG and GS Group properties.
Watcha Faces Seventh Restructuring Plan Deadline
Watcha, a domestic online video streaming service, faces its restructuring plan submission deadline on the 14th of this month. This marks the seventh extension of the deadline, with the initial court receivership decision made in August of last year. The first submission deadline was in January of this year.
The company pursued a sale through open competitive bidding earlier this year. CJ ENM and content recommendation platform Kinorites participated in preliminary bidding. Both companies did not submit acquisition proposals during the final bidding stage in April. CJ ENM decided not to pursue the acquisition after reviewing business and financial aspects. Watcha is now seeking acquisition candidates through private contract methods.
Watcha's 2024 consolidated revenue was 34.1 billion won, a 22% decrease from the previous year. Operating loss was 2 billion won, reduced from the previous year, but total capital at year-end was minus 87.5 billion won, in a state of complete capital erosion. Current assets were only 6.4 billion won while current liabilities reached 97.2 billion won.
FAQ
Q: What is the expected sale price for S&I Corporation?
A: The expected sale price for S&I Corporation is around 900 billion won.
Q: Which global private equity firms participated in S&I Corporation's preliminary bidding?
A: Blackstone, Warburg Pincus, and Orix participated in the preliminary bidding conducted by JP Morgan last month.
Q: What is Watcha's current financial status?
A: Watcha's 2024 consolidated revenue was 34.1 billion won, with total capital at year-end of minus 87.5 billion won, indicating complete capital erosion. Current assets were 6.4 billion won while current liabilities reached 97.2 billion won.
