KKR, Taeyoung to sell S.Korea JV in more than $2 bln deal - sources (updated)

Taeyoung Engineering & Construction

30/01/2024 10:53

(Adds companies' background)
    By Kane Wu
       HONG KONG, Jan 30 (Reuters) - Global buyout firm KKR &
Co  KKR.N  and South Korea's Taeyoung Group are planning to sell
their joint venture Ecorbit in a deal that could value the
environment company at more than $2 billion, two people with
knowledge of the matter said.
    The firms have mandated Citigroup and UBS to manage the sale
process, which is expected to begin in the next couple of
months, said the people, who declined to be identified as the
information is confidential.
    KKR, Citi and UBS declined to comment. Taeyoung Group and
Ecorbit could not be reached for immediate comment outside
business hours. The Korea Economic Daily first reported the bank
mandate on Tuesday.
    Ecorbit was launched in 2021 through a merger of KKR's waste
management company Eco Solutions Group and Taeyoung-owned
landfill operator and water management firm TSK Corp. It
specializes in water treatment, industrial and medical waste
management and material recycling, according to its website. 
    The sale comes after Taeyoung Group's affiliate Taeyoung
Engineering & Construction  009410.SS  said in December it would
restructure its debt, which amounts to 4.58 trillion won ($3.6
billion) including project financing loans.
    The builder's debt woes have prompted South Korea's
government to pledge it would work with the central bank to
swiftly deploy market stabilising measures if needed.
    KKR, which is leading the sale, has yet to finalise details
of the plan, while Taeyoung E&C's creditors are expected to meet
in the coming weeks, said one of the sources.
    The sources said KKR, which manages Ecorbit under its Asia
infrastructure fund, and Taeyoung Group are looking to fully
exit the company via the sale.

 (Reporting by Kane Wu in Hong Kong; Additional reporting by
Joyce Lee in Seoul; Editing by Jan Harvey)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))