PwC provided advisory on the acquisition of TES for SK ecoplant

PwC Korea Deals team found a potential target company in electrical waste and waste battery recycling business in Singapore for SK ecoplant, which is transforming into an environmental company. This deal was significant as it is SK ecoplant's first sizable cross-border M&A with the target company valued at KRW 1.2 trillion and a footstep to global waste recycling market. After the acquisition, SK ecoplant covers major location for each region and is expected to create synergy with SK Group which is engaged in EV battery manufacturing. 

SK ecoplant was looking for global expansion, and acquisition of a company for potential IPO in the future. The team had an extensive search in finding a target company to meet such need. As electrical battery and its waste recycling are fast-growing industry, PwC Korea along with other advisory firms had little knowledge on the industry. We brought in global experts for interviews to quickly yet fully understand the industry. With this knowledge, we delivered the value-up points for decision making of SK ecoplant. 

Electronic waste ("E-Waste") is a type of waste material that holds significant potential value from both environmental and economic perspectives, making it the most suitable for recycling and contributing to a circular economy. Amidst the increasing generation of E-Waste due to the Fourth Industrial Revolution, its recycling rate remains low, leading to various environmental, social, and economic issues. Within the waste electronic market, there is high growth potential in the IT devices and battery sectors. 

After the acquisition, the stock price of SK ecoplant increased by approximately 32%, from KRW 73,000 (market capitalization of KRW 2.6 trillion) in early 2022 to KRW 96,000 (market capitalization of KRW 3.4 trillion) in 2023. The stock price reflected the positive response from investors to this transaction. 

PwC Korea harnessed the strength of the PwC global network and well-comprehended the requirements of both the acquirer and the seller. The team proposed a bilateral structure to enhance the certainty and efficiency of the deal, ultimately leading to a successful M&A. 

PwC Corporate Finance acted as a lead financial adviser to SK ecoplant - the PwC team advising on the deal was Steven Jeong and Daeho Kang. PwC Korea also provided financial due diligence, tax and consulting services (the FDD team led by Junghoon (James) Lee, the Tax team led by Michael Kim and the consulting team was led by Won-Seok Yoo).