South Korean private equity fund Whale Investment Co. that was named as second preferred bidder to take over Consus Asset Management Co. in June is given exclusive negotiating rights after Singapore-based ARA Asset Management Ltd. was pushed out due to discord in negotiation.

According to multiple sources from the investment bank industry on Friday, Deloitte Anjin LLC, the sales advisor of Consus Asset Management, has changed the preferred bidder for Consus Asset Management from Singapore-based ARA Asset Management to Korean private equity fund Whale Investment.

The change in the preferred bidder comes after the seller and Singapore-based property management company ARA Asset Management that was given the priority right to negotiate the deal before Whale Investment have failed to narrow differences over the deal terms.

Consus shareholders were said to have demanded that the company’s future biggest stakeholder should take over a substantial amount of the company shares that can help significantly boost its capital. ARA Asset Management was reported to have offered 20 billion won ($17.5 million) to 30 billion won for the Korean peer, according to sources. Industry experts estimate the purchase price of Consus Asset Management would be about 30 billion won including newly issued shares.

The newly selected preferred bidder, Whale Investment, is a relatively new, local private equity fund founded by Seol Jong-man, former investment bank head at Seoul-based IBK Securities Co. and other local investment experts. They are known to have abundant experience in dealing merger and acquisition deals, including that of Kumho Asiana Group package deal, while working at IBK Securities.

Consus Asset Management that specializes in alternative investments was founded in 2004 by Kim Young-jae, former spokesperson of the Financial Services Commission. Kim is currently the asset manager’s chief executive. The largest shareholder of the company is Hanil Cement Co. with 49 percent stake ownership.

By Chun Gyung-woon and Song Gwang-sup

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