Accounting advisory for Brookfield's acquisition of SK Airplus's industrial gas and carbon businesses

PwC Korea provided accounting advisory services to Brookfield Asset Management in connection with its investment in SK Airplus’s industrial gas and carbon businesses. Valued at KRW 1.3 trillion, the target businesses comprised long-term industrial gas supply contracts primarily serving SK hynix’s M15 and M16 fabrication plants, together with a semiconductor-grade CO₂ business. A comprehensive assessment of long-term infrastructure cash flow stability and industry, contractual and operational risks was therefore central to the engagement.

PwC Korea went beyond a review of historical performance by analyzing long-term supply contracts, exposure to semiconductor cycles, and operational and regulatory risks to assess the cash flow characteristics of the businesses. Drawing on its experience in the industrial gas and semiconductor sectors, the team incorporated industry outlook and key issues into its financial analysis and deepened its review by linking data from the existing M16 production facilities with Brookfield’s investment experience in Korea’s gas and energy infrastructure sector.

PwC Korea also proactively assessed accounting and tax matters arising from the carve-out and RCPS structure, including carve-out financial statements, standalone costs, continuity of existing commercial relationships, and tax issues relating to dividends and redemption. Through collaboration between the GSP and PE groups, PwC Korea provided integrated support covering financial due diligence, transaction structuring, and accounting and tax risks, contributing to the investment decision and successful completion of the transaction.