SK Networks Co. and some local investors have expressed their interest in buying local home appliance vendor Tongyang Magic Co., a deal estimated at some 500 billion won (US$448 million), industry sources said Monday.

A consortium of homegrown private equity fund Glenwood and NH PE has put Tongyang Magic up for sale. The consortium took over the home appliance vendor in 2014 for 280 billion won.


According to the sources, the consortium is planning to receive preliminary bids from potential investors on Thursday.

The race for the takeover of Tongyang Magic has drawn keen interest from a slew of investors.

Local food conglomerate CJ Group and a number of investment firms, including Affinity Equity Partners and IMM Private Equity, may also participate in the bid, the sources said.

The consortium plans to launch the formal bidding process next month.

Tongyang Magic reported 38 billion won in operating profit and

393 billion won in sales last year, a sharp improvement from 322 billion won in sales and 23 billion won in operating income in 2013.

Tongyang Magic supplies a range of household appliances, including gas ovens, washing machines and vacuum cleaners. (Yonhap)