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Hyundai LNG Shipping |
[Alpha Biz= Reporter Kim Jisun] The IMM Private Equity (PE) and IMM Investment consortium have successfully extended the deadline for the sale of by two more years. After a one-year extension in June this year, the consortium has now completed refinancing, setting a new deadline for the end of 2026.
According to investment banking (IB) industry sources on Monday, the IMM consortium recently completed a refinancing of 217 billion KRW for the acquisition financing of Hyundai LNG Shipping. Three institutions—KB Kookmin Bank (935 billion KRW), Hana Securities (635 billion KRW), and Korea Investment & Securities (300 billion KRW)—provided the funding. The refinancing is for a two-year term, running from the end of this year to the end of 2026.
The IMM consortium had previously aimed to sell Hyundai LNG Shipping to HMM for 800 billion KRW but was unable to reach an agreement on the price, which led to the deal falling through.
Last year, IMM sought 800 billion KRW for the company, including a premium for control, but HMM offered only 300 billion KRW, resulting in a significant valuation gap. The market now views IMM as delaying the sale due to the belief that the company is currently undervalued.
Hyundai LNG Shipping’s performance last year showed a decrease in revenue, which amounted to 338.7 billion KRW, down from 398.1 billion KRW in the previous year. However, operating profit increased from 12.1 billion KRW to 25.8 billion KRW. Industry sources see HMM as the most likely buyer. HMM, which holds around 10 trillion KRW in cash assets, is seen as needing to acquire Hyundai LNG Shipping due to a "competitor restriction" clause preventing it from entering the LNG transport business until 2030.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
