EQT Infrastructure is investing KRW2trn (€1.44bn) to acquire a 68% stake in South Korean cyber and physical security company SK Shieldus.
The Swedish private equity firm’s value-add infrastructure fund is buying the interest from Macquarie Asset Management, which owns close to 37% in the infrastructure business, and SK Square, and affiliate of Korean conglomerate SK Group. SK Square will retain the remaining 32% stake.
SK Square said it will receive KRW864.6bn for the sale of part of its shares in SK Shieldus.
Following the transaction, EQT Infrastructure VI – a global fund with a €21bn hard cap target – is expected to be 5-10% invested, EQT said.
SK Shieldus is a physical security operator providing digital security infrastructure across 680,000 commercial customer sites and more than 100 central monitoring and dispatch centres across South Korea.
Sang Jun Suh, managing director and head of South Korea for EQT’s infrastructure advisory team, said the deal marked EQT value-add infrastructure’s first investment in Korea and comes just weeks after the firm opened an office in Seoul.
“The company is a clear leader in both the Korean physical and cyber security markets, and EQT value-add infrastructure is excited about partnering with SK Square to support SK Shieldus as it continues to roll out new digitised security solutions and invest in the decarbonisation of its vehicle fleet.”
Park Jung-ho, vice-chairman of SK Square, said: “Our joint management deal will provide us an opportunity to upgrade the global competitiveness of the Korean security industry.
“With the support from EQT, SK Square will further enhance the shareholder value, based on its first full-cycle investment performance since the launch of the company.”
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