쌍용건설

Global Sae-A Group, the holding company of Sae-A Trading, the world’s largest apparel manufacturer and seller, will become the new owner of Ssangyong E&C, the unparalleled leader in overseas construction.

 

In March of this year, Sae-A submitted a letter of intent (LOI) to acquire Ssangyong E&C from the Investment Corporation of Dubai (ICD). The apparel giant ed Mirae Asset Securities as the lead manager and had been conducting detailed due diligence in partnership with the law firm Lee & Ko and the accounting firm EY Hanyoung.

 

After due diligence and negotiations on share ratio, purchase price, and future operations, Sae-A signed a share purchase agreement (SPA) with ICD on October 14. Once the Korea Fair Trade Commission (KFTC) completes its review of the corporate consolidation, Sae-A will become the largest shareholder of Ssangyong E&C. According to an agreement with ICD, Sae-A will hold 90 percent of Ssangyong E&C’s shares and move forward with a capital increase for the latter. The capital increase will be worth more than the acquisition value of Ssangyong E&C.  

 

Global Sae-A Group currently operates more than 10 subsidiaries, including Sae-A Trading, the world’s largest apparel manufacturer Tailim Paper and Tailim Packaging, corrugated paper and packaging manufacturers Sae-A STX Entech, a global EPC (engineering, procurement, construction) company Valmax Technology Corporation, a hydrogen energy company and IN THE F and S&A, fashion industry companies.

 

Moving forward, Ssangyong E&C will be able to participate in construction projects ordered by Sae-A’s subsidiaries while foraying into the Central and South American market (where Sae-A has a strong presence) through the region’s infrastructure and urban development projects financed by diverse funding and investment options. Meanwhile, Sae-A will take advantage of Ssangyong E&C’s well-established business network in the Middle East, Singapore, Malaysia, and other regions.

 

Synergy with Sae-A’s construction-related subsidiaries is also expected. Through technology partnerships with Sae-A STX Entech, a global EPC specialist and Valmax, a company focusing on liquefied natural gas (LNG) and green hydrogen energy solutions, Ssangyong E&C will be able to create new growth opportunities while enhancing its commitment to ESG practices.

 

Meanwhile, it is said that ICD seeks to maintain/establish friendly relations and partnerships with Ssangyong E&C and Sae-A, as manifested by its decision to retain 10 percent of Ssangyong E&C’s equity. Indeed, by remaining a major shareholder, ICD has left open the possibility for the construction company to continue its business operations in Dubai and other Middle East regions and be involved, as a business partner, in future projects initiated by ICD and Sae-A.