SEOUL, Oct 12 (Reuters) - South Korea’s food-to-entertainment CJ Group is considering a bid for Coway Co Ltd, owned by private equity firm MBK Partners, a CJ Group spokesman said on Monday.
Coway, South Korea’s largest water purifier sales and rental firm, was purchased by MBK in 2012. MBK owns a 30.9 percent stake in Coway through a holding company.
MBK’s stake in Coway was worth 2.1 trillion won ($1.83 billion) as of Friday’s close. Adding management control premium could drive up the deal value to mid-2 trillion won to 3 trillion won range, analysts said.
MBK is expected to receive initial expression of interest from potential bidders on Thursday, and one of CJ’s units such as CJ Cheiljedang Corp or CJ O Shopping Co Ltd could step up to be the bidder, local newspaper Korea Economic Daily reported, citing unnamed investment banking sources.
The CJ spokesman declined to comment on which bank is advising the group for the deal. An MBK spokesman declined comment. (Reporting by Joyce Lee; Editing by Michael Perry)