Hong Kong-based private equity (PE) firm Affinity Equity Partners has launched a tender offer to take over the South Korean household products company Lock & Lock, according to a stock exchange filing on Thursday.
Affinity Equity Partners, which already owns a 69.64% stake in Lock & Lock, is looking to acquire the remaining 30.33% stake, which would delist the company from The Korea Exchange (KRX).
Lock & Lock’s stock price ended at 8,680 won ($6.31) on Thursday, up 6.11% from the previous close following the news.
According to the filing, the Hong Kong PE firm’s tender offer stands at 8,750 won ($6.37) per share.
Affinity acquired a 63.6% stake in Lock & Lock for 633 billion won ($460 million), paying 18,000 won ($13.09) per share, in August 2017 from its founder and chairman Kim Jun-il. Its stock price has dropped to less than half the value of its acquisition price in 2017.
Established in 1998, Affinity Equity Partners manages around $14 billion in funds and assets, focusing on leveraged buyout and growth capital transactions in Korea, Southeast Asia, Greater China, Australia, and New Zealand.
Lock & Lock was founded in 1978 and has grown into a popular household name mainly for its airtight containers and kitchenware products. Its biggest markets include South Korea, China, and Vietnam.
