Woongjin Coway’s sale to MBK Partners resumes

Woongjin Coway Co., South Korea’s top water purifier maker, said Monday the process of selling a major stake in the company to local private equity fund MBK Partners Ltd. has resumed after a court approved the sale that is set to be concluded in January.

In August, Woongjin Holdings, the parent company of Woongjin Coway, signed a deal with MBK Partners to sell its 30.9 percent stake in the purifier unit to the private equity fund for 1.2 trillion won ($1 billion), to help improve its financial health.

Still, the process was later suspended, as Woongjin Holdings filed for court receivership in late September due to financial difficulties. Woongjin Holdings was subsequently placed under court receivership.

Woongjin Coway said in a regulatory filing earlier Monday that the Seoul Central District Court approved the sale on Friday, a move that resumed the sale process again. The court endorsement for the deal is needed, as Woongjin Holdings is under court receivership.

MBK Partners is scheduled to pay 360 billion won, or 30 percent of the stake value, to Woongjin Holdings in early December before paying the remainder in January, said a Woongjin Holdings official.

Woongjin Holdings has said it can pay back debts to its creditors with proceeds from its stake sale of Woongjin Coway.

Woongjin Holdings owes 560 billion won to its creditor banks. (Yonhap News)