[BizHankook] Attention is focused on whether Busan Equity Partners (Busan EP) will succeed in acquiring Nexflex, a supplier for Samsung Electronics and Apple. Nexflex is a manufacturer of Flexible Copper Clad Laminates (FCCL), a core material for flexible printed circuit boards. Busan EP is pushing for the acquisition by forming a consortium with multiple firms. However, a red light has turned on for funding as Taekwang Industrial, which had been considering joining the consortium, recently decided against participation. MBK Partners acquired Nexflex for 530 billion KRW in 2023, and currently, the special purpose company (SPC) Danwon Holdings owns a 100% stake in Nexflex. The market value of Nexflex is estimated to be around 800 billion KRW.
MBK Partners had initially planned to proceed with the main bid for the sale of Nexflex in July. Potential candidates discussed at the time included the Affirm Equity Capital-Stick Investment consortium and Bain Capital. However, the schedule for the main bid was postponed, and a resumption date has not yet been set. Since then, it is reported that the Affirm Equity Capital-Stick Investment consortium and Bain Capital have withdrawn their acquisition plans. Some suggest that the court's decision to discontinue rehabilitation proceedings for Homeplus at the time had an impact. However, MBK Partners maintains that the Homeplus situation and the sale of Nexflex are unrelated.
Since August of this year, rumors have circulated that the Busan EP consortium is a strong candidate to acquire Nexflex. The rumor suggests that Busan EP is pursuing the acquisition by forming a consortium with Shinhan Investment Corp., Taekwang Industrial, and I-Tech. Detailed reports even claimed that Busan EP and Shinhan Investment Corp. would form a private equity fund (PEF) to act as general partners, while Taekwang Industrial and I-Tech would serve as major investors. However, Taekwang Industrial stated in a disclosure last September, "We examined the Nexflex bid from various perspectives but ultimately decided not to participate."
While the Busan EP consortium is currently known to have no clear competitors, they are in a situation where they must find a new investor to replace Taekwang Industrial. The market values Nexflex at approximately 800 billion KRW.
Nexflex is a company with recognized market value. Flexible printed circuit boards are used as core components in smartphones, foldable displays, wearable devices, and electric vehicle batteries. Given the high global user base for smartphones and wearable devices, the company is expected to record stable revenue for the foreseeable future.
In fact, Nexflex's performance is on an upward trend. According to audit reports, Nexflex's revenue grew by 64.55%, from 163.4 billion KRW in 2024 to 269 billion KRW in 2025, and operating profit increased by 82.78%, from 41 billion KRW to 75 billion KRW over the same period. The financial structure is also sound; as of the end of last year, Nexflex's debt-to-equity ratio was only 18.08%.
Nevertheless, the reason Nexflex's popularity is falling short of expectations is its high reliance on Samsung Electronics and Apple. These two companies are Nexflex's primary clients, and it is known that revenue generated from Apple, in particular, is substantial. This means that if Apple changes its business policy, it could negatively impact Nexflex's performance.
It is also difficult for MBK Partners to significantly lower the sale price of Nexflex. MBK Partners acquired Nexflex for 530 billion KRW in 2023. Given the significant improvement in Nexflex's performance since then, analysts suggest it would be difficult to set a sale price below 800 billion KRW.
MBK Partners was also under no urgent pressure to sell Nexflex. However, a variable is the recent political pressure on MBK Partners regarding the normalization of Homeplus.
Homeplus received a decision from the court to terminate its rehabilitation proceedings last July while facing difficulties in raising funds. Although MBK Partners Chairman Kim Byung-ju stepped in to provide support, such as guaranteeing a Debtor-in-Possession (DIP) loan for emergency operating funds, it is considered that there is still a long way to go before management is normalized. MBK Partners is pushing to sell Homeplus, but no potential buyers have emerged.
Homeplus CEO Cho Joo-yeon stated at the National Assembly's National Policy Committee audit on the 12th regarding normalization measures, "I will do my best." Regarding additional support from MBK Partners, she replied, "The shareholder is doing its best, but there are various difficulties."
MBK Partners needs to secure cash, if only to prepare for a worst-case scenario regarding Homeplus. If Busan EP succeeds in attracting investors and the sale of Nexflex is completed safely, it would not be a bad situation for MBK Partners. Bizhankook inquired about the related stance to Busan EP but did not receive a response.