South Korean freight broker PNS Networks Co. in hands with local private equity fund Keystone Private Equity is seeking to take over the passenger transportation business of Dongbu Express that is estimated at 90 billion won ($80 million).

According to investment bank industry sources on Sunday, PNS Networks in a consortium with Keystone Private Equity recently submitted a bid in the preliminary auction for Dongbu Express’ non-core units placed out for sale by food making conglomerate Dongwon Group. Dongbu Express is the nation’s third largest logistics company whose business includes freight shipping and handling as well as passenger transportation.

PNS Networks is a local freight broker that provides logistics and warehouse services. Its affiliate Pantech C&I Co., an IT solution provider privately held by Park Byeong-yeop, owns a 40 percent stake in the firm and the rest is owned by Park’s two sons with a 30 percent stake, each. Park who founded the country’s smallest handset maker Pantech Co. in 1991 and exited the phone making business later has upped his efforts to expand freight business through mergers and acquisitions. In 2015, the company acquired cash transport service provider Valex Security Korea Ltd.

Out of Dongbu Express’s non-core businesses up for grabs, PNS Networks reportedly offered to purchase the express bus operation Dongbu Bus that is most lucrative and estimated at up to 90 billion won. Dongwon has put Dongbu Express’s non-core businesses up for sale in a package including an 11.11 percent stake in Seoul Express Bus Terminal Co., express bus operation Dongbu Bus, car rental business Dongbu Rent-a-car, and taxi-hailing business Dongbu NTS. Market analysts estimate the total sales price would reach above 200 billion won.

Dongwon prefers to sell the whole non-core business units of Dongbu Express to one buyer, but it is also open to a plan to sell off the businesses in splinters. Most of the investors that have taken a part in the acquisition race are interested in purchasing the express bus operation only. A total of seven or eight investors including the PNS Networks-Key Stone consortium have been selected as the eligible potential buyers. The main bid is scheduled to be held in early June after the potential buyers complete due diligence by June 7.

By Kang Doo-soon and Chun Gyung-woon

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