Kukdong Oil & Chemicals Co., Ltd. completed the acquisition of Ssangyong Enertech Co.,Ltd. from Ssangyong Cement Industrial Co., Ltd..
June 26, 2017
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Kukdong Oil & Chemicals Co., Ltd. (KOSE:A014530) agreed to acquire Ssangyong Enertech Co.,Ltd. from Ssangyong Cement Industrial Co., Ltd. (KOSE:A003410) for KRW 55.5 billion on April 28, 2017. Kukdong Oil & Chemicals Co., Ltd. will acquire 0.5 million shares of Ssangyong Enertech. The consideration will be paid in cash as a deposit of KRW 5.5 billion to be paid on April 28, 2017 and balance of KRW 49.9 billion will be paid on May 31, 2017. As of June 1, 2017, the balance will be paid on the transaction closing date. The consideration will be funded via retained funds and borrowings/loans. During the financial year ended December 31, 2016, Ssangyong Enertech Co.,Ltd. reported total assets of KRW 41.2 billion, sales of KRW 431.4 billion and net profit of KRW 4.5 billion. The Board of Directors of Kukdong Oil & Chemicals Co., Ltd passed a resolution for the transaction on April 28, 2017.
As on June 1, 2017, an amendment report was filed which revised the end date of May 31, 2017. The transaction will be completed as soon as the Korea Fair Trade Commission approves the transaction. PricewaterhouseCoopers Korea acted as external rating institution in the transaction.
Kukdong Oil & Chemicals Co., Ltd. (KOSE:A014530) completed the acquisition of Ssangyong Enertech Co.,Ltd. from Ssangyong Cement Industrial Co., Ltd. (KOSE:A003410) on June 26, 2017. The transaction was approved by the Korea Fair Trade Commission and the balance of KRW 49.9 billion was paid on June 26, 2017.
Kukdong Oil & Chemicals Co.,Ltd is a Korea-based company mainly engaged in the manufacturing of lubricants, waterproofing sheets, liquefied petroleum gas (LPG) and asphalt products. The lubricants include industrial lubricants, metal working fluid, process oil, liquid paraffin, greases and paraffin waxes used for industrial machines, cosmetics, pharmaceuticals, rubber mixture and others. The waterproofing sheets are mainly used in construction sector. The LPG is used for heating systems and automobiles. The asphalt products are used in construction and automobiles. The Company distributes its products within domestic market and to overseas markets.