[Alpha Biz= Kim Jisun] MBK Partners has resumed efforts to sell Golfzon County, Korea’s largest golf course operator, after weighing between an initial public offering (IPO) and a trade sale. The private equity firm has recently lowered its valuation expectations and is actively seeking potential buyers.
According to industry sources on June 1, MBK has distributed teaser letters through its advisor Morgan Stanley to both domestic and international strategic investors and private equity firms. The asking price, once expected to exceed KRW 2 trillion, has been revised downward to the mid-KRW 1 trillion range. A domestic private equity firm with prior experience in the golf industry is reportedly reviewing the acquisition.
The sale includes 100% of Golfzon County’s shares. The company is currently held by Korea Golf Infrastructure Investment, a special purpose company (SPC) established by MBK, which owns 54.83% in common shares and 3.54% in convertible preferred shares. Golfzon Newdin Holdings holds the remaining 41.63%.
Golfzon County operates 20 golf courses nationwide and dominates the Korean market. Since MBK’s initial KRW 114 billion investment in 2018 to acquire a 50% stake, the firm has injected an additional KRW 288 billion through four capital increases. Under MBK’s ownership, Golfzon County has rapidly expanded, acquiring two to three courses per year—including Lake Hills Suncheon and, most recently in February, Orange Dunes GC (now Golfzon County Songdo). Of its 20 courses, 18 are profitable public golf courses, which do not require membership.
The company previously attempted an IPO in 2022, as part of a commitment to list by May 2023 under its agreement with MBK. Although Golfzon County passed the preliminary review, the listing was eventually scrapped due to unfavorable market conditions and the expiration of its eligibility period. MBK then pivoted to a sale process, seeking a valuation of around KRW 2 trillion, but failed to secure a buyer. Facing the maturity of acquisition financing, MBK carried out a refinancing of approximately KRW 300 billion last year.
Golfzon County’s revenue rose from KRW 266.8 billion in 2021 to KRW 294.3 billion in 2024, but operating profit declined from KRW 104.8 billion to KRW 91.4 billion over the same period.
MBK is marketing Golfzon County as an attractive investment due to its profitable golf courses in the Seoul metropolitan area, fully automated IT-based operating systems, and the high regulatory barriers to developing new courses. While investor enthusiasm for golf course assets has cooled, recent bids in the sale of Jungbu CC reached a record-high valuation of over KRW 11 billion per hole.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
