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(Photo= Yonhap news) |
[Alpha Biz= Reporter Paul Lee] According to the Maeil Business Newspaper and industry sources on the 3rd, Glenwood Private Equity, a domestic private equity fund (PEF) manager, has finalized the sale of its stake in Olive Young, a major shareholder.
Glenwood PE recently completed the transfer of its 22.56% stake in Olive Young to CJ Group and a Special Purpose Company (SPC), reportedly receiving the full sale price of 780 billion won.
Earlier in March, Glenwood PE signed a contract with CJ Group and SPC to transfer its 22.56% stake in Olive Young. CJ Group's Olive Young acquired approximately half of the stake, about 11.3%, in the form of treasury stock, while the remaining portion was acquired by SPC, with participation from Shinhan Bank.
Glenwood PE had acquired a 22.56% stake in CJ Olive Young through a pre-IPO (pre-listing equity investment) in 2021 for 410 billion won.
The valuation of Olive Young for the sale was approximately 3.5 trillion won, about 30% lower than the anticipated market valuation of 5 trillion won at the time of Olive Young's IPO.
Considering that the valuation was around 1.8 trillion won at the time of Glenwood PE's investment in 2021, it has roughly doubled.
With this sale, Glenwood PE is expected to realize a profit of around 370 billion won after about three years of investment, achieving a high internal rate of return (IRR) of about 30%.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
