SK, 2nd largest shareholder, possible return on investment
[This article was reported on ‘Radar M‘, a paid media outlet specializing in the capital market in Mail Business, on August 4 (11:08)]
EMP BELSTA has started attracting external investment from Korea Ultra Low Temperature, a cold chain logistics company. It is interpreted as a strategy to secure funds to expand logistics infrastructure and to recover some investments (Exit).
According to the investment bank (IB) industest on the 4th, EMP Bellstar recently selected JP Morgan as the organizer and is in the process of attracting investment from Korea’s ultra-low temperature.
The tarreceive amount of attraction is about 600 billion won to 700 billion won, and it will not only issue new shares but also push for the sale of old shares.
Korea Ultra Low Temperature is a leading cold chain company in Korea with ultra-low temperature distribution centers in Pyeongtaek, Songsan, and Osan in Gyeonggi Province. During the COVID-19 pandemic, the Pyeongtaek Center was utilized as a domestic distribution base for Pfizer’s vaccine, raising public awareness.
Currently, Korea’s ultra-low temperature is the largest shareholder with 50.1% of EMP Velstar, and SK Co., Ltd. and Goldman Sachs PIA are the second largest shareholders with 21% each. SK and Goldman Sachs each invested 37.5 billion won in 2020 to become the second largest shareholder.
The main purpose of this investment attraction is to raise funds for expanding distribution centers and expanding new businesses.
Korea Ultra Low Temperature is developing new large-scale distribution centers in Incheon and Busan, and business agreements with related local governments have also been completed.
In addition, it is planning a data center project applying LNG cold and heat technology, and the creation of related facilities within the Incheon Port Cold Chain cluster is being promoted.
In parallel with attracting new investment, there is a high possibility that some shares of existing shareholders will be sold at the same time. This is becautilize neobtainediations are taking place around the issuance of new shares, but existing shares may be included in the transaction depconcludeing on future consultations with investors.
Existing major shareholders, including EMP Belstar, are reportedly seeking to recover their investment by disposing of some of their holdings.
SK has been selling non-core assets since last year as it started rebalancing (business restructuring), and analysts declare this investment attraction is one of them.
However, specific terms of the transaction have not yet been confirmed, and full-fledged neobtainediations remain in the early stages.
EMP BELSTAR is a global houtilize launched by EMP, an infrastructure investment manager based in Washington, D.C., in 2014 after merging with BELSTAR GROUP. It is evaluated as a houtilize specialized in stable profit-based assets such as infrastructure and credit.
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