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[Alpha Biz=(Chicago) Reporter Kim Jisun] According to the IB (investment bank) industry on the 2nd, HMM submitted a bid proposal for Hyundai LNG Shipping at 4 p.m. HMM held a board meeting the day before and decided to participate in Hyundai LNG Shipping's main bid. Subject to the sale are 100 percent stakes held by private equity fund (PEF) operators IMM Private Equity (PE) and IMM Investment Consortium (79 percent) and Daishin Private Equity (21 percent). HMM spent the early 300 billion won as a buying price.
The origin of Hyundai LNG Shipping is Hyundai Merchant Marine (currently HMM) LNG Exclusive Division. Hyundai Merchant Marine sold Hyundai LNG Shipping to IMM PE and others for 1.3 trillion won during the restructuring process in 2014. Since Hyundai LNG Shipping has a debt of 500 billion won, the actual amount of money invested was 500 billion won. In addition, the contract included a "no business" clause that says Hyundai Merchant Marine will not do LNG business until the end of 2029.
However, there are also voices of concern that the acquisition of Hyundai LNG Shipping could be a burden at a time when HMM itself is in the process of selling for privatization. The Korea Maritime Promotion Agency and KDB Industrial Bank, the largest shareholders of HMM, have set up an advisory group for the sale and have been discussing proper sales procedures since April.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
