S.Korea's Woongjin to sell water purifier rental unit

Woongjin Co

27/06/2019 02:10

SEOUL, June 27 (Reuters) - South Korea's Woongjin Group said
on Thursday that it would sell a 25.08 percent stake in water
purifier rental firm Woongjin Coway  021240.KS , just three
months after the group regained control of the unit for 1.89
billion won ($1.6 million).
    The credit rating of holding firm Woongjin Co  016880.KS 
was recently downgraded after solar energy unit Woongjin Energy
entered the court-led rehabilitation process, causing
"unexpected financial risks", the group said in a statement.
    "We have agreed to preemptively sell Woongjin Coway before a
crisis happens and to clear off all of our debts," Woongjin said
in a statement. 
    Shares of Woongjin Co  016880.KS  slumped 14%, while
Woongjin Thinkbig  095720.KS , an education service unit, rose
5%. Woongjin Coway rose 3.6% in a flat wider market  .KS11 .
    Woongjin, which has hired Korea Investment and Securities to
manage the deal, said it aimed to complete the sales within one
year. 
    Woongjin Thinkbig bought a 22.17 percent stake in Woongjin
Coway in March from South Korean private equity firm MBK
Partners for 1.69 trillion won, nearly six years after the group
had sold the unit. It subsequently bought an additional stake
worth about 200 billion won. 
    Woongjin Group borrowed about 1.6 trillion won to finance
the deal. 
    ($1 = 1,153.4000 won)

 (Reporting by Sangmi Cha and Hyunjoo Jin; Editing by Stephen
Coates)
 ((Sangmi.Cha@thomsonreuters.com; +82 2 3704 5646; Reuters
Messaging: sangmi.cha.thomsonreuters.com@reuters.net))