Home to roost

30 October 2018 By Jeffrey Goldfarb Follow @jgfarb

Nearly six years after selling a controlling stake in Coway to a private equity shop, Woongjin is buying it back with a partner for $1.5 bln. News of a return to its original steward erased 25 pct of the appliance rental company’s value. It’s a reminder of just how sprawl can scare.

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Korean conglomerate Woongjin said on Oct. 29 it would buy back control of appliance maker Coway from MBK Partners for about 1.7 trillion won ($1.5 billion) after having sold a 31 percent stake to the private equity firm in January 2013.

Together with buyout firm STIC Investments, education division Woongjin Thinkbig will pay 103,000 won a share for a 22 percent stake that includes management rights. MBK bought 31 percent of the company for 1.2 trillion won. Shares of Coway, which rents water and air filters, have nearly doubled in price under MBK’s stewardship.

Woongjin shares closed up 7.8 percent at 2,570 won while those of Woongjin Thinkbig were down 6.1 percent to 4,085 won apiece. Coway shares fell 25 percent to 63,000 won.

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