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SM Group to take over Taekil Construction

Collected: 2016.06.29

Distributed: 2016.06.30

Source: Go Direct

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Samra Midas Group (SM Group) will acquire Taekil Construction Co., moving a step closer to achieve its goal to become a dominant player in the construction market. Taekil Construction would be the third construction company that it has taken over so far this year following Sungwoo Construction Co. and DongAh Construction Industrial Co.

According to investment bank industry sources on Tuesday, Choyang Corp, a plastic compound manufacturing unit of SM Group, signed an agreement to purchase Taekil Construction, an unlisted Korean builder that was established in 1999. It specializes in harbor, river dredging and civil engineering projects, and posted 4.3 billion won ($3.7 million) in sales last year. The acquisition cost is not disclosed.

Taekil Construction was put under a debt workout program due to massive losses from a series of failed investment projects, but SM Group seems to have decided to bet on high growth potential of Taekil Construction with prowess in harbor construction, an unnamed industry source said. Samil PricewaterhouseCoopers, leading sale advisor, put the debt-ridden builder up for sale in April this year.

SM Group hopes that the latest buyouts of the three builders can help it not only expand its position in the local construction industry but also advance into overseas market, said SM Group Chairman Woo Oh-hyun.

Since 2010, SM Group has acquired a number of local builders including Kukdong Engineering & Construction Co., Woobang Corp., Sungwoo Construction and DongAh Construction Industrial. Chairman Oh has vowed to grow the group as a construction tycoon in the local market and buy more builders.

By Ko Min-suh

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