NexFlex, a South Korean manufacturer of flexible copper-clad laminates (FCCLs) for flexible substrates in smartphones and TVs, has attracted six applicants for its preliminary bid, raising expectations for a successful deal.
According to the investment banking industry on Thursday, four strategic investors and two financial investors submitted offers in a preliminary tender for a 100% stake in NexFlex held by SkyLake Equity Partners, a Seoul-based private equity. Lead lead for the sale, KR & Partners, expects to shortlist a final candidate by early April.
NexFlex, formerly the FCCL division of SK innovation, was created and acquired by SkyLake in 2018. FCCL is a core component of a flexible printed circuit board (FPC), which is important for making devices, especially smartphones and televisions, thinner and lighter.
The sale of NexFlex was expected to succeed as the company’s FCCL manufacturing capability proved globally competitive, with its ability to design and manufacture FCCL’s polyimide flim base material adding to its market appeal.
It supplies FCCL to global smartphone manufacturers such as Samsung Electronics and Apple. After acquiring SkyLake, its revenue quickly improved thanks to surging smartphone sales. Considering that its annual revenue increased from 69 billion won ($56.65 million) in 2019 to 150 billion in 2021, its selling price is estimated at around 700 billion won.
SkyLake sent a letter inviting potential buyers to acquire its entire stake in the company in January, and more than 30 applicants, including domestic and foreign companies and private equity firms, have expressed interest in l ‘OK.
By Cho Yoon-hee and Jenny Lee
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]