MBK Partners Pursues Stake in Tmaxsoft Co. Amid Complex Deal Dynamics

North Asia-focused private equity firm MBK Partners is reportedly considering acquiring shares of South Korean enterprise software developer Tmaxsoft Co., signaling renewed interest in the company after a failed takeover attempt two years ago.

According to banking sources on Thursday, executives from MBK Partners have held discussions with Tmax Group founder and Chair Park Dae-yeon to convey the private equity firm’s intention to purchase the software developer.

The proposed acquisition strategy involves MBK Partners supporting Tmax Group in exercising a call option to repurchase Tmaxsoft shares from Seoul-based Skylake Equity Partners, the current owner of the software developer. Upon the exercise of the call option, MBK Partners aims to acquire Tmaxsoft shares at a premium.

However, the potential deal faces challenges, as Cactus Private Equity, a significant stakeholder of Tmax Group, holds a priority right to acquire shares of Tmax Group’s former subsidiary, Tmaxsoft. This could complicate MBK Partners’ acquisition plans.

Previously, MBK Partners participated in a bid alongside Skylake and Korean cloud management platform operator Bespin Global to acquire Tmaxsoft in late 2021. However, Skylake emerged as the winning bidder, acquiring a 60.9% stake in Tmaxsoft for 560 billion won ($407.7 million) from Tmax Group in March 2022.

As part of the acquisition agreement, Tmax Group secured a call option to repurchase Tmaxsoft shares within a two-year period starting from March 15, 2024. The potential involvement of MBK Partners in acquiring Tmaxsoft shares underscores the complexities of navigating the competitive landscape of private equity investments in the South Korean software industry.

Financial Desk