Macquarie Korea Infrastructure Fund (MKIF) has agreed to acquire a 100 percent equity stake in both Haeyang Energy Co. (HY) and Sorabol City Gas Co. from Korea Energy Holdings.
The transaction will be made through Macquarie’s investment vehicles, Youngsan Clean Energy (YCE) and Bomun Clean Energy (BCE).
The purchase price of the equity stake is $798 billion South Korean won ($702 million), and the total transaction cost including the purchase price and expenses incurred in relation to the transaction is expected to be $821.9 billion South Korean won ($723 million).
HY is the exclusive city gas retail distributor in Gwangju City and eight other regions in Jeollanam-do. SRB is the exclusive city gas retail distributor in two regions in Gyeongsangbuk-do.
As city gas retail distributors are required to make large-scale capital investments for entry into the business, local governments grant an exclusive distribution permit to a single distributor for each r
