Anchor Equity Partners and Taekwang Industrial have emerged as leading contenders in the race to acquire a controlling 63% stake in South Korea’s Aekyung Industrial.

The deal is expected to be valued at approximately ₩600bn ($441.4m), according to sources cited by KED Global.

The stake is currently held by AK Holdings and Aekyung Asset Management. Samjong KPMG, the sell-side advisor, has reportedly narrowed the list of bidders to four or five, with Hong Kong-based private equity firm Anchor Equity and Taekwang among the frontrunners. Both have met the seller’s asking price, and are competing to capitalise on the global boom in Korean beauty and consumer brands.

Founded in South Korea, Aekyung Industrial owns a number of household names including Kerasys (hair care), 2080 (oral care), and Luna (cosmetics). The parent company, Aekyung Group, is divesting the unit as part of a broader financial restructuring.

Anchor Equity’s bid marks a renewed push into Korea, following its previous investment in local online grocer Kurly Inc., which has since entered the premium cosmetics segment. A combination with Aekyung would present a natural opportunity for synergy.

Meanwhile, Taekwang confirmed its bid as part of a strategic pivot away from its struggling chemicals business, revealing a ₩1.5tn investment plan focused on cosmetics, real estate, and energy by 2026. The company is reportedly partnering with Yuanta Investment on the deal, structuring it through a co-general partner model.

However, Taekwang’s bid has encountered internal resistance. Its plan to issue exchangeable bonds (EBs) to finance the deal, secured against 24.41% of its treasury shares, has drawn opposition from second-largest shareholder Truston Asset Management, which filed an injunction to block the issuance. Korea’s Financial Supervisory Service also issued a correction order, citing the absence of designated bond recipients as a concern.

Despite the financing challenges, both bidders remain in active contention for what could be one of South Korea’s most significant consumer-focused private equity transactions of the year.

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.