Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, will make a bid to acquire South Korean home appliance supplier Tongyang Magic, according to news reports in South Korea yesterday.
Citing sources in South Korea’s investment banking sector, the Korea Economic Daily and Joong Ang Daily said Hon Hai has chosen a global brokerage as its financial advisor in preparation for its bid to acquire Tongyang Magic.
The Taiwanese company declined to comment on the news reports, which said that the preliminary bidding is scheduled to start in November and the final price is likely to be about 500 billion South Korean won (US$451.6 million).
Chinese and European companies are also expected to bid on Tongyang Magic, which supplies a wide range of home appliances such as gas ovens, washing machines and vacuum cleaners, the reports said.
They also said CJ Group, a South Korean food and entertainment company, had hinted recently that it was considering the possibility of acquiring Tongyang Magic.
Tongyang Magic was acquired in 2014 by a South Korean consortium made up of Glenwood Private Equity and NH Private Equity for 279.8 billion won and has since seen an increase in sales, the newspapers said.
Tongyang Magic recorded 321.9 billion won in sales in 2013 and 390.3 billion won last year, the reports said.
The company’s Web site says the firm ships products to about 70 markets worldwide, including Taiwan, the US, the UK and Australia.
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