Macquarie's $3.6 billion S. Korean gas firm draws interest from KKR, Brookfield and industry peers, sources say

By Kane Wu and Yantoultra Ngui

HONG KONG/SINGAPORE, June 10 (Reuters) - Potential bidders for Macquarie Asset Management's South Korean industrial gas firm DIG Airgas include investment firm KKR & Co KKR.N, Brookfield Asset Management BAM.TO, and French gas supplier Air Liquide AIRP.PA, in a deal that could fetch up to $3.6 billion, two sources with knowledge of the matter said.

Macquarie MQG.AX has hired Goldman Sachs GS.N and JPMorgan JPM.N to run the sale and is expecting non-binding bids this month, the sources said, declining to be named as the information is not public.

DIG Airgas, South Korea's third-largest industrial gas producer, has also attracted interest from infrastructure funds including I Squared Capital and Stonepeak, and U.S.-based global gas and chemical firm Air Products APD.N, said the sources.

The Seoul-headquartered company has about $170 million to $180 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA), and Macquarie expects a sale to value the firm at 18-20 times core earnings, said one of the sources.

DIG Airgas and Air Liquide did not immediately respond to requests for comment.

Macquarie, JPMorgan, Goldman Sachs, KKR, Brookfield, I Squared Capital and Stonepeak declined to comment.

Air Products declined to comment on the sale.

"South Korea is a vital and growing market, and Air Products remains committed to growing its industrial gas business serving customers safely and reliably," its spokesperson said.

Established in 1979, DIG Airgas produces industrial gases, electronic gases and gas equipment, according to its website.

Macquarie bought the company, formerly known as Dausung Industrial Gases, from South Korean private equity firm MBK Partners for 2.5 trillion won ($1.85 billion) in 2019, local media reported at the time.

($1 = 1,351.8900 won)