Devonshire Capital
The Korea Herald December 18th 2003

KTIC, Devonshire Korea to set up M & A firm

Korea Technology Investment Corp. said yesterday that it will join hands with Devonshire Capital to create a company specializing in mergers and acquisitions in Northeast Asia.

KTIC said it signed a memorandum of understanding with the U.K.-based investment bank on merging the operations of KTIC M & A, its sister company, with Devonshire Korea, Devonshire Capital's affiliate.

The two parties are to invest about 2 billion won ($1.5 million) once the board confirms the transaction. A formal agreement is expected in February.

Devonshire Capital would hold the largest 51 percent stake in the merged company, while KTIC holds another 49 percent.

Accordingly, the board will consist of three directors appointed by Devonshire Capital and two from KTIC.

"The new firm will specialize in M & As at mostly Northeast Asian enterprises" said a KTIC spokesman.

He added that KTIC and Devonshire Capital have also decided to jointly set up a fund for investing in unlisted businesses or companies undergoing restructuring.

Tentatively named the "North Asia Buyout Fund" KTIC has been seeking to pool money for it since April.

With foreign investors such as the Carlyle group and Loan Star Fund participating, the fund is to be launched in February with an estimated $500 million.

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