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UPDATE 1-Hyundai Green Food pulls out of $147 mln WiniaMando purchase
September 5, 2014 / 12:40 AM / 3 years ago

UPDATE 1-Hyundai Green Food pulls out of $147 mln WiniaMando purchase

* Hyundai Green: WiniaMando future growth appeared limited

* MOU for acquisition was signed in August

* WiniaMando controlled by CVC Capital Partners (Adds comments from Hyundai spokesman, share price)

SEOUL, Sept 5 (Reuters) - South Korea’s Hyundai Green Food Co Ltd said it has decided not to follow through with a planned $147 million acquisition of WiniaMando Inc as it future growth for the kimchi refrigerator maker appeared limited.

Hyundai Green shares were trading down 7.9 percent in morning trade after the announcement.

Hyundai Green signed a memorandum of understanding to purchase WiniaMando from private equity firm CVC Capital Partners in August.

WiniaMando’s main brand is Dimchae, a line of refrigerators designed to store kimchi - a spicy and pungent side dish of fermented cabbage and other vegetables. The company pioneered the concept of kimchi fridges and holds a market share of over 30 percent in South Korea, according to CVC’s website.

“WiniaMando’s main products are refrigerators and kimchi refrigerators, markets for which competition is very fierce,” a Hyundai Green spokesman told Reuters. “We determined that future growth would be limited.”

CVC, which first acquired a stake in the company under a UBS Capital-led consortium in 1999, could not be immediately reached for comment.

1 US dollar = 1,018.7000 Korean won Reporting by Se Young Lee; Editing by Paul Tait and Edwina Gibbs

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