Abu Dhabi sovereign wealth fund Mubadala is eyeing an investment in South Korea’s domestic defence firm MNC Solution, according to a news report by Chosun Biz.
The investment would be through a commitment to the Korea Investment & Securities Co. Partners Private Equity Division project fund, which was selected as the preferred bidder for the acquisition of MNC Solution in March, the South Korea news platform further reported.
The stake for sale is a 73.78% controlling equity in MNC Solution, held by the Socius–Well to Sea Investment consortium. Chosun Biz reported Korea Investment & Securities Co. Partners PE is currently in final talks with a stock purchase agreement (SPA) expected to be signed later this month at an expected price of 1 trillion won ($650 million).
Mubadala is one of several overseas investors reviewing commitments to the project fund, the same reported further added, as the Abu Dhabi state-backed fund eyes expansion into ‘K-defense’, a term used to describe South Korea’s defence and military manufacturing industry.
In February, days before the start of the US-Iran conflict, the UAE and South Korea signed a memorandum of understanding to promote defence cooperation worth more than $35 billion, spanning anti-air defence, air force and navy.
MNC Solution is a key supplier of hydraulic components, primarily for the defence industry, in South Korea.
(Writing by Bindu Rai, editing by Seban Scaria)
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