Swedish Giant EQT Launches KRW 2.2 Trillion Tender Offer for Douzone Bizon Privatization

포스팅 대표 이미지

Swedish PEF EQT Moves to Take ERP Leader Douzone Bizon Private

In a massive move that signals growing global private equity appetite for Korean tech, Sweden-based EQT Partners (affiliated with the Wallenberg family) has launched a tender offer to acquire all remaining public shares of Douzone Bizon (012510.KS). This is the first step in a strategic plan to voluntarily delist the company from the KOSPI market and take it private.

  • The Offer: EQT is offering 120,000 KRW per share, a 25% premium over the previous closing price.
  • Scale: The total tender offer is valued at approximately 2.18 trillion KRW (approx. $1.61 billion USD).
  • Goal: If successful, EQT's stake will rise to 92.52%, paving the way for a full squeeze-out and delisting.

What Happened: A Mega-Deal in the Software Sector

The tender offer is being executed through Doronicum, a special purpose vehicle (SPV) established by EQT Partners. The firm is seeking to purchase 18,158,974 shares, representing 57.69% of the total potential outstanding shares. This follow-up follows EQT's acquisition of a 34.85% controlling stake from the company's chairman, Kim Yong-woo, and Shinhan Financial Group back in November for roughly 1.32 trillion KRW (approx. $975 million USD).

The tender offer period runs from February 23 to March 24, with NH Investment & Securities (005940.KS) acting as the lead manager. EQT has stated they will purchase all tendered shares regardless of the participation rate, emphasizing their commitment to the privatization process.

Korea Market Context: The Privatization Trend

For international investors, this deal highlights a recurring theme in the Korean market: Voluntary Delisting. In Korea, for a majority shareholder to voluntarily delist a company, they typically need to secure a dominant stake (often 95% for KOSPI-listed firms to ensure a smooth squeeze-out process under commercial law). Privatization allows management to focus on long-term restructuring and digital transformation without the quarterly pressure and regulatory oversight of being a public entity.

This deal is set to be the largest tender offer for delisting since the Osstem Implant case in 2023, where MBK Partners and UCK Partners successfully took the dental leader private. It reflects a growing trend where global PEFs identify undervalued Korean companies with stable cash flows, such as those in the B2B software (ERP) space.

Investment Implications

The immediate impact is a sharp convergence of Douzone Bizon’s stock price toward the 120,000 KRW offer price. However, the broader implications are more significant:

  • Sector Revaluation: This transaction sets a high valuation benchmark for other Korean B2B software and SaaS (Software as a Service) providers on the KOSPI and KOSDAQ.
  • M&A Activity: The involvement of a prestigious global firm like EQT may trigger further M&A interest in Korean tech infrastructure firms that have historically suffered from the "Korea Discount."
  • Arbitrage Opportunities: While the price is capped at 120,000 KRW, investors will be watching for any potential price adjustments or competitive counter-bids, though unlikely given EQT's existing control.

Stocks Mentioned

  • Douzone Bizon (012510.KS): The target company, Korea's leading ERP and B2B software provider.
  • NH Investment & Securities (005940.KS): The lead manager for the tender offer.
  • Shinhan Financial Group (055550.KS): The former second-largest shareholder who divested to EQT.

Popular posts from this blog

VERIVERY's Kangmin to Make Highly Anticipated Solo Debut This March

Image
New Beginnings for VERIVERY’s Youngest Star Exciting news has broken for fans of the K-pop group VERIVERY! The group's youngest member, Kangmin , is officially preparing to step into the spotlight as a solo artist. This move marks a significant shift in his career and a fresh chapter for his agency, Jellyfish Entertainment. Quick Summary Solo Launch Date: Kangmin is reported to release his debut solo album on March 23 . Personal Confirmation: While his agency has yet to release a formal press statement, Kangmin personally confirmed the news to fans via the communication app Bubble. Survival Show Momentum: This debut follows his successful run on the audition program "BOYS II PLANET," where he narrowly missed the final debut lineup. What Happened On February 16, Korean media outlet STAR NEWS reported that Kangmin is in the final stages of preparation for a solo album set for release on March 23. The news caught fans by surprise, and Kangmin himself reacted with a mix of...
Read more

Major South Korean Banks Accelerate Branch Closures Despite Record Profits

Image
The brick-and-mortar banking era in South Korea is rapidly shrinking. According to recent industry data, the number of physical bank branches operated by the country's top lenders hit a new record low in 2025, continuing a downward trend driven by the aggressive shift toward digital finance. TL;DR Historical Lows: The number of branches operated by Korea's top five banks fell to 3,748 in 2025, a significant drop from over 4,400 just five years ago. Digital Shift: Banks cite a 30% decline in foot traffic and physical workloads as customers migrate to mobile-first "non-face-to-face" services. The Profit Paradox: The closures come despite record-breaking net profits of 13.99 trillion won ($9.67 billion), sparking criticism over the marginalization of elderly customers. What Happened Data released on Tuesday reveals that South Korea's five major commercial lenders— KB Kookmin Bank, NH NongHyup Bank, Shinhan Bank, Woori Bank, and Hana Bank —operated a combined ,3748...
Read more