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Mirae Asset targets major U.S. buyouts despite slump
By Chung Joo-wonPublished : Aug. 6, 2013 - 20:57
Mirae Asset Global Investments Co., one of the nation’s major financial firms, is pushing for an aggressive merger and acquisition of U.S.-based assets, even as other brokerages express doubts, citing market maturity.
The Korean firm is considering forming a consortium with U.S. private equity fund investors to purchase the L.A.-based coffeehouse chain Coffee Bean & Tealeaf.
But the deal could be scuppered at any moment, Mirae Asset officials said, refraining from disclosing details related to the purchase proposal.
Besides the Coffee Bean deal, Mirae Asset has made purchase deals on a variety of U.S. sports titans and properties amid the global economic slowdown.
But Mirae Asset stressed that it would continue looking to overseas assets.
“The ratio of our overseas portfolio has been in fact small. We are more eager than other domestic securities firms to make deals abroad, with our biggest clients, including large pension providers, in mind.” a Mirae Asset spokesperson said.
If the Coffee Bean deal is successful, it will mark Mirae Asset’s second major M&A deal in the United States, following last year’s purchase of sportswear maker Fila Korea and golf goods maker Titlist.
But analysts at other Korean investment firms are questioning the timing of purchase.
“The coffeehouse market is quite saturated. If (Mirae Asset) wanted to buy it, it should have done it a few years ago,” said a Samsung Securities analyst who chose to remain unnamed.
In response, Mirae Asset hit back, insisting that Coffee Bean was a global chain.
“Coffee Bean is not constrained to Korea, and is about to enter the Chinese coffeehouse market, not to mention the Southeast Asian markets,” a Mirae Asset spokesperson said.
Market observers estimate the buying price to fall between 400 billion won and 500 billion won, but the Mirae Asset spokesperson said the final price still remained undecided.
In May, Mirae Asset acquired “225 West Wacker,” a 31-story premium office building in West Loop, Chicago, providing offices to Apple, law firm Edwards Wildman Palmer LLP and big-name financial managers including Merrill Lynch and PPM America. It paid some 240 billion won ($215 million) for the building that has been managed by JPMorgan Asset Management for the past 10 years.
The Korean asset manager is also at the final stage of acquiring Four Seasons Hotel Sydney, currently managed by Australian fund manager Eureka Funds Management. The property is expected to cost about $350 million, market observers said.
By Chung Joo-won (joowonc@heraldcorp.com)
The Korean firm is considering forming a consortium with U.S. private equity fund investors to purchase the L.A.-based coffeehouse chain Coffee Bean & Tealeaf.
But the deal could be scuppered at any moment, Mirae Asset officials said, refraining from disclosing details related to the purchase proposal.
Besides the Coffee Bean deal, Mirae Asset has made purchase deals on a variety of U.S. sports titans and properties amid the global economic slowdown.
But Mirae Asset stressed that it would continue looking to overseas assets.
“The ratio of our overseas portfolio has been in fact small. We are more eager than other domestic securities firms to make deals abroad, with our biggest clients, including large pension providers, in mind.” a Mirae Asset spokesperson said.
If the Coffee Bean deal is successful, it will mark Mirae Asset’s second major M&A deal in the United States, following last year’s purchase of sportswear maker Fila Korea and golf goods maker Titlist.
But analysts at other Korean investment firms are questioning the timing of purchase.
“The coffeehouse market is quite saturated. If (Mirae Asset) wanted to buy it, it should have done it a few years ago,” said a Samsung Securities analyst who chose to remain unnamed.
In response, Mirae Asset hit back, insisting that Coffee Bean was a global chain.
“Coffee Bean is not constrained to Korea, and is about to enter the Chinese coffeehouse market, not to mention the Southeast Asian markets,” a Mirae Asset spokesperson said.
Market observers estimate the buying price to fall between 400 billion won and 500 billion won, but the Mirae Asset spokesperson said the final price still remained undecided.
In May, Mirae Asset acquired “225 West Wacker,” a 31-story premium office building in West Loop, Chicago, providing offices to Apple, law firm Edwards Wildman Palmer LLP and big-name financial managers including Merrill Lynch and PPM America. It paid some 240 billion won ($215 million) for the building that has been managed by JPMorgan Asset Management for the past 10 years.
The Korean asset manager is also at the final stage of acquiring Four Seasons Hotel Sydney, currently managed by Australian fund manager Eureka Funds Management. The property is expected to cost about $350 million, market observers said.
By Chung Joo-won (joowonc@heraldcorp.com)
