South Korean chemical company Taekwang Industrial and Hong Kong private equity firm Anchor Equity Partners have emerged as frontrunners to acquire a controlling stake in Aekyung Industrial, as the financially strained parent conglomerate seeks to raise cash following December’s deadly airline disaster.
Samjong KPMG narrowed the bidder list to four or five candidates this week for the 63% stake in the consumer goods and cosmetics maker, according to investment banking sources. Aekyung Group is seeking approximately 600 billion won ($441.4 million) for the holding.
The sale comes as Aekyung Group grapples with mounting financial pressure following the Jeju Air crash that killed 179 people. AK Holdings’ net debt has surpassed 2 trillion won, with a debt-to-equity ratio of 328.7%. Consumer boycotts targeting Aekyung products have emerged since the December disaster, adding to the conglomerate’s woes.
Taekwang confirmed its bid while announcing plans to invest 1.5 trillion won by 2026 to diversify into cosmetics and other sectors as its core chemical business struggles. However, the company’s exchangeable bond funding plan has faced opposition from shareholders.
Aekyung Industrial, which owns the Kerasys hair care and Luna cosmetics brands, generated 679.1 billion won in sales last year with 46.8 billion won in operating profit. Anchor Equity’s potential acquisition would create synergies with portfolio company Kurly, the Korean e-commerce platform.
