PHOTO
Sovereign wealth funds are eyeing an investment in South Korea’s domestic defence firm MNC Solution, according to a news report by Chosun Biz.
The investment would be through a commitment to the Korea Investment & Securities Co. Partners Private Equity Division project fund, which was selected as the preferred bidder for the acquisition of MNC Solution in March, the South Korea news platform further reported.
The stake for sale is a 73.78% controlling equity in MNC Solution, held by the Socius–Well to Sea Investment consortium. Chosun Biz reported Korea Investment & Securities Co. Partners PE is currently in final talks with a stock purchase agreement (SPA) expected to be signed later this month at an expected price of 1 trillion won ($650 million).
According to the report, several overseas investors have been reviewing commitments to the project fund as they expand their Asia portfolios to include ‘K-defense’, a term used to describe South Korea’s defence and military manufacturing industry.
In February, days before the start of the US-Iran conflict, the UAE and South Korea also signed a memorandum of understanding to promote defence cooperation worth more than $35 billion, spanning anti-air defence, air force and navy.
MNC Solution is a key supplier of hydraulic components, primarily for the defence industry, in South Korea.
(Writing by Bindu Rai, editing by Seban Scaria)
