Kim & Chang successfully represented Korea Investment Private Equity, Korea Investment & Securities Co., Ltd., and Daishin Securities Co., Ltd. in their acquisition of a minority stake in Hanwha Energy. The transaction was complex in that the closing required adjustment of different interests among several investors, sellers, and the target company. The deal was able to reach a successful closing as our in-depth understanding of the investment industry and professional negotiation expertise stood out in leading the entire deal cycle, from the smooth execution of the contract to efficient communication among the parties, to ultimately reach a negotiable closing term.
The transaction showcased our firm’s intricacy in legal performance as the deal requested for an agreement of diverse and complex rights and obligations in relation to the shareholders and the investors regarding the existing shares of Hanwha Energy. In particular, we systematically structured the terms of agreement discussed among the parties regarding investment recovery conditions. We had to complete due diligence and contract negotiations with both domestic and overseas subsidiaries simultaneously within a limited time period, considering that the target company was an integrated energy supplier under the Integrated Energy Supply Act that not only operated electricity and heat supply businesses in Korea, but also had a diversified business portfolio including photovoltaic generation and automated facilities in several countries around the world. The complexity of the deal required significant expertise and our long history of diverse industry practice enabled the transaction to be successfully carried out.
Despite several challenging circumstances in this case, our firm assigned our specialist team of experts from various industries to conduct an in-depth review on licenses to be obtained for the operation of the target’s business, and provided multilateral advisory services from the due diligence stage through to the execution of the contract and the closing of the transaction.
