On the 4th, W.I (WI), a KOSDAQ-listed company, announced that it would withdraw from issuance of private convertible bonds worth 80 billion won. This is because the ‘Orbit-W1 New Technology Business Investment Association’, which was scheduled to acquire all convertible bonds, did not fulfill the payment. The IB industry understands that this union has failed in recruiting investors. A market official said, “The situation in which the stock price is falling and the interest rate of the acquisition finance is soaring is a situation in which transaction negotiations are often broken.”
Initially, WI formed a consortium with Bayside-Metis Private Equity to acquire Windsor. The total acquisition price was about 200 billion won. The terms of the contract also included a condition that Diageo Korea would supply Scotch whiskey undiluted solution to the Bayside-Metis consortium for 10 years.
WI planned to raise 80 billion won by issuing convertible bonds, and the Bayside-Metis consortium planned to raise about 50 billion won each as a project fund. The remaining amount was to be financed by Hana Bank’s acquisition financing (70 billion won). However, the transaction entered a new phase when WI failed to find an investor to acquire the convertible bond. The Bayside-Metis consortium is also known to have difficulties in recruiting project fund investors. Because of this situation, the IB industry is cautiously predicting that there is a possibility that the Windsor transaction may collapse. This is because a key investor, who will be responsible for about half of the total transaction amount, has left.
Previously, Diageo Korea decided to close the Windsor business in consideration of changes in mainstream trends and the COVID-19 situation. Windsor was a key brand, accounting for about 60% of Diageo’s whiskey division’s sales. Diageo also completed a spin-off of the division to finalize the sale of the Windsor brand and business rights. Diageo Korea is the Korean subsidiary of Diageo, one of the world’s largest alcoholic beverage companies. It has been selling ‘Windsor’, which boasts the largest share of Scotch whiskey in Korea, and ‘Johnnie Walker’, the world’s largest selling whiskey. A Diageo Korea official said, “Our position in selling the Windsor business has not changed.
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