Macquarie’s South Korean unit signed a definitive agreement on Dec. 6 to buy a non-controlling stake in LG CNS Co. Ltd., an IT services arm of LG Group, for 951.6 billion won ($800 million), according to a source with knowledge of the matter.
Under the transaction, Macquarie Korea Opportunities Management Ltd. has acquired a 35% stake, or 30.5 million shares, in the system integration company from LG Corp.
In a regulatory filing on Nov. 28, LG Corp. said the stake sale was aimed at improving business competitiveness of LG CNS. Its holding in the IT company was reduced to 49.95% from 85%.
For the stake deal, Macquarie Korea, led by Eric Yong Hwan Kim, nudged out the other shortlisted bidder KKR & Co.
It was Macquarie’s first major investment deal in South Korea since it acquired ADT Caps, a security services firm, for $2.5 billion in October 2018, in a consortium with SK Telecom Co. Ltd.
The deal, handled by JPMorgan, will be finalized around next February after going through the regulatory process, the source said.
By Dong-hun Lee
<Edited by Yeonhee Kim>
(Photo: Getty Images Bank)