18 December 2020
BDA advises Hyosung on the sale of Hyosung Capital to ST Leaders
Divested Hyosung Capital to ST Leaders Private Equity
BDA Partners is pleased to announce that its client, Hyosung Corporation (“Hyosung”), has sold Hyosung Capital to ST Leaders Private Equity, an emerging Korean financial sponsor.
Hyosung Capital is the specialized credit finance unit of Hyosung, focused on leasing and rental businesses across multiple sectors. Hyosung Capital offers a diversified portfolio of traditional lease and rental services to alternative investments, based on best-in-class risk management and core competence in new market development.
Hyosung Capital achieved a record profit in Q3 2020, notwithstanding the COVID-19 pandemic, driven by a well-balanced portfolio and outstanding credit management.
The sale was valued at greater than US$340m for 97.5% in Hyosung Capital, after strong competition from several bidders. The final price is equivalent to more than 1.0x book value at the closing date.
BDA Partners was the exclusive financial advisor to Hyosung on the transaction.
Charlie Maynard, Senior Managing Director and co-founder of BDA Partners, commented, “We’re very pleased to have worked for Hyosung to help consummate this transaction, and to secure attractive terms for a key client. We are pleased that BDA has added real value for Hyosung by achieving a strong outcome. We will continue to do so, going forward.”
Howard Lee, Managing Director and Head of Seoul at BDA Partners, commented, “We’re proud to have advised Hyosung Corporation on its successful divestment. The transaction continues the strong momentum for our FIG practice, and demonstrates the depth of our relationships and experience in the Korean M&A market, connecting blue chip corporates with the most ambitious private equity firms. BDA Partners has successfully driven this transaction to close in a tight timeframe, under strict parameters. This highlights BDA’s strengths in optimising the sale process and achieving a premium result.”
About Hyosung Corporation
Founded in 1996, Hyosung Corporation is one of the leading Korean conglomerates, engaged in the textile, power and industrial system, industrial material, chemical, and information and communication businesses. The Hyosung Group comprises over 50 subsidiaries and has an extensive global manufacturing and sales network around the World. www.hyosung.com
About Hyosung Capital
Founded in 1997, Hyosung Capital operates as a financial institution, providing various financial instruments in Korea. The company offers factoring services, loans for corporates, finance leasing for machine tools, and installment services for cars, machinery, and medical equipment. Two main revenue streams of the company are interest income from loans, and lease income. Hyosung Capital is one of the top 10 Korean financial capital institutions in terms of total assets. www.hyosung-capital.co.kr
About BDA Partners
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.
BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets. www.bdapartners.com
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors.
Acquired NEC Energy Solutions from NEC Corporation
Divested stake in Al Dur Power & Water to Kyushu Electric
Divested 100% to EagleTree Capital
Divested 100% to by Escalent
Acquired EMC Holdings from Affirma Capital
Acquired by The Blackstone Group
Divested Leyou to Warburg Pincus
Divested Kingstar to Zhongping Capital
Divested equity stake in Xinbang Logistics to HCT Logistics
Divested Kolon Water & Energy to SCPE
Divested Yuanyu Radio Advertising to Management / Orient Securities
Divested Singapore-based Retail Banking business
Acquired Barclay Vouchers in Japan
Acquired majority stake of Realys Group in China
Acquired Lablndia distribution business in India
Divested HCL Asia to the DKSH Group
Divested stake in Tokyo Stock Exchange to Tokyo Syoken Shinyoukumiai
Divested Phillipines-based subsidiary, Fedders Koppel Inc to KPL Aircon, Inc
Divested Cengage's 50% stake and placement of shares Manipal Universal Learning
Acquired Green Harbour business in Hong Kong and China