SEOUL, March 7 (Reuters) - SK Telecom 017670.KS , SouthKorea's No.1 telecom company by market share, entered anon-binding bid to buy domestic security systems company ADTCaps in a sale that could fetch at least $2.8 billion, a localnewspaper reported on Wednesday.
SK Telecom partnered with Macquarie Group MQG.AX unitMacquarie Infrastructure and Real Assets (MIRA) to enter thenon-binding bid for Carlyle-owned CG.O ADT, the Korea EconomicDaily reported, citing unnamed investment banking sources.
So far, the SK Telecom-Macquarie bid is up against a solebid by a consortium led by private equity firm CVC CapitalPartners made in late February, the paper said. It said the salecould fetch 3 trillion won ($2.81 billion) or more.
SK Telecom said it could not confirm or deny the report.Macquarie Infrastructure and Real Assets could not beimmediately reached for comment. CVC Capital did not have animmediate comment.
ADT Caps, a former unit of Tyco International Inc, offerscentral monitoring, access control, video surveillance controland other integrated security services and was bought by Carlylein an auction for $1.93 billion in February 2014.
Industry sources have said a private equity firm typicallylooks for a return of at least twice its initial investment,which means a sale of the business could potentially fetcharound $4 billion. biggest recent transaction involving private equity inSouth Korea was in September 2015, when Tesco TSCO.L soldHomeplus for $6.1 billion to a consortium led by MBK Partners.($1 = 1,068.4800 won)