Woongjin set to offload stake in water purifier subsidiary
Woongjin Holdings, the nation’s No. 1 maker of water purifiers, said yesterday it will sell a controlling stake in its purifier subsidiary Woongjin Coway to a local private equity fund to improve its financial structure.
Woongjin Holdings, the parent company of Woongjin Coway, will sell a 30.9 percent stake, or 21.88 million shares, in its purifier unit to MBK Partners for 1.09 trillion won ($962.9 million), the company said in a regulatory filing.
The private equity fund will control Woongjin Coway after the purchase is completed in late September.
Woongjin Holdings, which has tried to sell the purifier unit since February, said the proceeds from the stake sales will be used to improve its financial health.
Woongjin Coway is also a leading maker of air purifiers and bidets, with 1.8 trillion won in sales and 242.6 billion won in operating profit in 2011.