Shin & Kim acted as sole legal counsel for its long-time client SK Networks Co., Ltd (“SK Networks”) in its acquisition of Tongyang Magic, a South Korean kitchen appliance maker and water purifier rental company, from a consortium of two homegrown private equity funds, Glenwood Private Equity and NH Private Equity.
SK Networks has been trying to expand into new business areas, and the acquisition of Tongyang Magic is a significant step forward in its foray into the household rental business. SK Networks had previously unsuccessfully attempted to take over Coway, another major South Korean company engaged in the household rental business.
This transaction represents one of the largest M&A transactions involving a South Korean target company in the second half of 2016.
Shin & Kim’s advised SK Networks on all aspects of the transaction including due diligence, documentation, negotiation, merger filing and guidance on other regulatory issues. Shin & Kim’s extensive experience in transactions to acquire companies in the same business as Tongyang Magic’s was a significant boost to the successful completion of the transaction.