Mirae Asset Global Investments announced on Sunday that it has entered into a 290 billion won ($200 million) agreement with Essex Solutions, a wire manufacturing affiliate of the South Korean cable and industrial electric machinery conglomerate LS Group.
As part of this arrangement, a consortium made up of Mirae Asset and the local private equity firm KCGI will invest 290 billion won in Essex Solutions, obtaining a 20 percent equity stake in the company via a capital increase.
Essex Solutions, which was acquired by LS Group in 2008, manufactures magnet wires in the US and supplies copper magnet wire products to sectors such as automotive, energy, and industry. The LS subsidiary, focusing on products for electronic and hybrid vehicles, is poised for robust growth.
This investment will raise Essex Solutions’ market value to about $1 billion, supporting its upcoming initial public offering. LS Group plans for Essex Solutions to go public within this year.
Although the subsidiary initially intended to list on Korea’s main stock exchange Kospi, it is now considering a Nasdaq listing, due to high interest from the US capital market, according to the company.
Several prominent investors, including the Singaporean sovereign wealth fund GIC, Bain Capital, Goldman Sachs, and IMM, have expressed interest in the subsidiary prior to the IPO.
Mirae Asset Global Investments CEO Choi Chang-hoon led the investment deal with the firm’s private equity unit, visiting Essex Solutions’ headquarters in the US and holding discussions with its top executives, as explained by the firm.
“Mirae Asset Private Equity achieved a significant market success through this investment,” Choi stated. “We aim to drive market growth by diversifying our portfolio, leveraging a global network, and consistently expanding our investments as a leading private equity firm.”
By Im Eun-byel ([email protected])
