Hahn & Co, Korea’s leading private equity group, has been selected as the preferred bidder for a 46.14 per cent stake in Ssangyong Cement. Hahn & Company already owns part of the company's stake so its actual target will be 36.8 percent.

Ssangyong Cement was put on sale in October 2015. Hahn & Company and Hanil Cement were the strongest contenders, but the private equity fund was known to outbid the competition in the final round. The market value for the stake plus management rights is estimated to reach up to KRW800bn (US$682.9m).

When completed, Hahn & Company will become the largest shareholder of Ssangyong Cement. The second largest shareholder is Japan-based Pacific Cement with a 32.36 percent stake.

However, Pacific Cement has also claimed that it has a right to buy the stake ahead of others and is threatening to take a legal action against the sale. Other bidders are reported to have stayed away from the deal because of a possible management feud with Pacific Cement, whose stake cannot be ignored.

If successful, Hahn & Company will be a new owner of the country’s largest cement maker. As of last year, Ssangyong Cement shipped 8,652,000t, giving it a leading market share of 19.8 percent. Combined with the equity fund’s stake of 2.58 percent in Hannam Cement and 2.56 percent in Daehan Cement, Hahn & Company will control one quarter of the country’s cement market.