In this transaction, MBK Partners successfully exited from its investment in Doosan Machine Tools, while DTR Automotive Corporation was able to diversify its business via its acquisition of the company. Kim & Chang provided comprehensive M&A legal advice related to the PEF’s exit as well as the legal issues that may arise in business diversification efforts by the buyer.
As a large-scale deal with a transaction size of KRW 2.4 trillion, the seller had to consider various contractual mechanisms necessary for the PEF’s clean exit. Meanwhile, in order to secure acquisition financing, the buyer had to adopt a special structure involving restructuring mergers of the DTR group’s subsidiaries, raising capital through the issuance of DTR Automotive Corporation’s bonds and third-party financing, and effectuating a capital increase of GMT Holdings, which serve as the basis for the acquisition fund of Doosan Machine Tools. Kim & Chang successfully provided overall advice on the legal issues arising from the seller’s exit and the buyer’s financing options.
