Case study

 The Mando Leveraged Buy-Out

by Professor Ian H. Giddy
New York University

Jan 6, 2000 - Chase Asia Equity Partners announced that it and UBS Capital had jointly purchased South Korea's Mando Machinery Corp for $446 million. In the transaction, Chase and UBS purchased three of Mando's five plants in South Korea through a leveraged acquisition. Chase said in a statement the total purchase price of $446 million was funded with $167 million of equity from the investors and a 316 billion won ($279 million) bridge loan facility from Korean financial institutions. The won-denominated bridge loan facility will be refinanced in early 2000 by a committed term loan facility, it said. Mando sold its plant in Ansan, which produces air conditioners, to a foreign investment consortium led by UBS Capital in September. | | | | contact
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