[Alpha Biz=(Chicago) Reporter Paul Lee] LX Group has decided not to participate in the acquisition of HMM (011200).

According to the investment banking (IB) industry on the 12th, LX International has decided not to participate in the main bid for the acquisition of HMM as the shipping industry has deteriorated significantly recently. "LX did not even conduct due diligence," a senior industry source said. "It is time to plan to secure its own funding and acquisition financing, but there is little contact with the financial sector or private equity funds (PEF)." LX was the only one of the three acquisition candidates to send executives at the time of HMM due diligence.

LX's absence from the takeover race is due to the financial burden of the worsening shipping industry. On the day of the additional listing of 200 million shares, HMM shares rose unexpectedly to 16,550 won, with their market capitalization reaching 11.4036 trillion won. The price of stocks to be sold (398.79 million shares) that do not take into account the management premium alone exceeds 6.5 trillion won. Asked by the Seoul Economic Daily whether he gave up acquiring HMM, an LX official replied, "There is nothing we can confirm regarding his absence from the main bid."

 

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