March 3 Tyco International Ltd, a maker
of fire safety and security systems, said it would sell its
South Korean security business to private equity firm Carlyle
Group for $1.93 billion and take a charge in the second
The company also said its board had approved an additional
share repurchase program of $1.75 billion, increasing the total
authorization to $2 billion.
Tyco put ADT Korea up for sale last year, attracting bids
from Affinity Equity Partners, Bain Capital, KKR & Co
and South Korea's MBK Partners as well as Carlyle, Reuters
This is the second big private equity transaction in South
Korea this year. KKR and Affinity Equity Partners sold Oriental
Brewery to Anheuser-Busch InBev SA in January for $5.8
ADT Korea offers central monitoring, access control, video
surveillance control and other integrated security services,
Tyco said, adding that the transaction was expected to close in
the second quarter.
Tyco said it cut its second-quarter profit forecast to 39-41
cents per share from its earlier forecast of 44-46 cents to
reflect the sale of the business.
Analysts on average were expecting earnings of 46 cents per
share, according to Thomson Reuters I/B/E/S.
Carlyle Group said it had secured committed debt financing
from Korea Exchange Bank, Kookmin Bank, Industrial Bank of
Korea, Korea Investment & Securities and UBS AG.
Morgan Stanley was Tyco's financial adviser while Simpson
Thacher & Bartlett LLP and Kim & Chang acted as legal counsel.
Legal firms Clifford Chance and Lee & Ko advised Carlyle Group.