YG Entertainment joins a race to buy Hansol Oak Valley Resort


South Korea’s leading entertainment company YG Entertainment in hands with a local private equity firm Truben Investment Co. is in a race to take over the country’s luxury resort operator Hansol Development Co., hoping to create synergy with its sports management and event business.

According to investment industry sources on Tuesday, YG Entertainment and Truben Investment jointly submitted a bid to buy a 91.43 percent stake plus management rights in Hansol Development from Hansol Holdings Co. Hansol Development operates Hansol Oak Valley Resort in Wonju, Gangwon that offers golf, skiing, dining and lodging. It is one of the well-known luxury resorts in Korea.

The sale deal is led by Samil PricewaterhouseCoopers (PwC) and market experts estimate the sale price at below 100 billion won ($89 million). It is reported that YG Entertainment has decide to join the race as a main buyer and Truben Investment as a financial investor, and other contenders include Korea Real Estate Investment Trust.

Hansol Development reported an operating profit of 7.2 billion won on sales of 94.4 billion won in 2017, much lower than 22.2 billion won in operating profit on sales of 107 billion won in 2016. Hansol Oak Valley Resort’s golf club alone is estimated to be worth 315 billion won, but the resort is attached with membership deposits of 550 billion won, which is considered as a liability on balance sheet.

Market watchers believe YG Entertainment is seeking to acquire the resort in an attempt to expand its sports management and marketing business. Last year, the company took over X-Golf, Korea’s largest golf course booking site, through its subsidiary YG Sports.