CBC Group-Led Consortium in Talks for Bain’s Hugel Stake
CBC Group-Led Consortium in Talks for Bain’s Hugel Stake
(Bloomberg) -- A consortium led by private equity firm CBC Group is in advanced talks to acquire Bain Capital’s controlling stake in Seoul-listed cosmetic pharmaceutical company Hugel Inc., according to people familiar with the matter.
The investor group could include a South Korean investor, said the people, who asked not to be identified as the discussions are confidential. A Middle Eastern fund is also considering chipping in, one of the people said.
Bain is seeking as much as $2 billion from a disposal of its 44.4% stake in Hugel, Bloomberg News reported in May. The Boston-based private equity firm is working with Bank of America Corp. on the potential sale of the stake, the people have said.
South Korean firms Samsung C&T Corp. and Shinsegae Inc. were previously in talks with Bain for the asset but have dropped their bids. Sihuan Pharmaceutical Holdings Group Ltd. said in July that the Hugel stake sale presented a potential strategic opportunity and it would further evaluate the merits of a deal.
Talks between Bain and the CBC-led group could fall apart and other bidders are still studying the asset, the people said. A representative for Bain declined to comment, while calls to CBC Group and Hugel’s offices were unanswered outside of business hours.
Shares in Hugel rose as much as 0.4% in early Monday trading in Seoul, giving it a market value of about $2.6 billion.
CBC Group was established in 2014 and focuses on health-care businesses in Asia, its website shows. The Singapore-based firm, formerly known as C-Bridge Capital, invests across sectors including biopharmaceuticals, drug distribution and molecular diagnosis as well as medical devices and services.
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With assistance from Bloomberg