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Photo = Yonhap news |
[Alpha Biz= Paul Lee] The sale of Jungbu Country Club (Jungbu CC), a golf course owned by South Korea’s AK Group, has attracted strong interest, with the final sale price expected to exceed KRW 200 billion (approx. USD 147 million). The price per hole could surpass KRW 11 billion, according to investment banking sources.
On May 12, the investment banking industry confirmed that multiple bidders submitted Letters of Commitment (LOCs) in the main bidding round, which was overseen by Samjong KPMG, the deal’s advisor. This follows the preliminary bidding round conducted last month. All bidders in the main round are strategic investors (SIs), with no financial investors (FIs) participating. Some major securities firms reportedly secured SIs early and showed active interest, structuring the deal to include acquisition financing from the real estate finance sector.
Industry insiders expect the total sale price to far exceed KRW 200 billion. The 18-hole course alone could fetch KRW 180 billion (KRW 10 billion per hole), with an additional KRW 20 billion or more expected for adjacent unused land.
AK Group is aiming to sign a stock purchase agreement (SPA) with a preferred bidder by the end of June. The group plans to swiftly finalize the sale of Jungbu CC and proceed with the sale of its cosmetics and household goods subsidiary, Aekyung Industrial, which is expected to fetch around KRW 600 billion.
Jungbu CC, a members-only 18-hole course located in Gwangju, Gyeonggi Province, benefits from its proximity to Seoul and is surrounded by several prestigious courses, including East Valley CC, Namchon CC, Lexfield CC, and Gonjiam CC.
All shares of Jungbu CC are held by Aekyung Chemical, and the sale proceeds are expected to be funneled to AK Holdings, the group’s holding company. This could be executed either through Aekyung Chemical purchasing AK Holdings’ convertible bonds or providing a direct loan.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
