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[Alpha Biz=(Chicago) Reporter Paul Lee] H&Q Korea Partners, a private equity fund (PEF) operator, has been confirmed to be a white knight for Hyundai Group Chairman Hyun Jung-eun. Chairman Hyun borrowed 230 billion won from M Capital at 12 percent a year to raise 200 billion won in compensation, which is aimed at repaying it.
According to the investment banking (IB) industry on the 13th, Chairman Hyun and H&Q are currently discussing the stock restructuring of Hyundai Elevator. The deal is worth 300 billion won.
Hyundai Network, whose current chairman and children own 100 percent of the shares, will issue convertible bonds worth 180 billion won and exchange bonds worth 80 billion won. Subject to the EB exchange are shares of Hyundai Elevator held by current chairman. H&Q will buy CB and EB by combining 40 billion won in Hyundai Elevator's old shares owned by the current chairman.
Chairman Hyun will also exercise management control in this investment. However, if Chairman Hyun's side fails to repay CB and EB funds within the set deadline, H&Q is pushing to include a condition to secure a stake in Hyundai Elevator's management rights.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
