About us
(Seoul=Yonhap Infomax) Hak Seong Kim = South Korean private equity firms IMM Private Equity and IMM Investment are set to exit their 11-year investment in Hyundai LNG Shipping Co., the country’s largest liquefied gas carrier operator, by selling the company to an affiliate of Indonesia’s Sinar Mas Group.
According to investment banking industry sources on the 25th, both parties are scheduled to sign a share purchase agreement (SPA) for Hyundai LNG Shipping on the 26th.
The transaction value is reported to be around 400 billion won ($308 million).
Sinar Mas Group is one of Indonesia’s largest conglomerates, with business interests spanning energy, telecommunications, finance, real estate, food, and healthcare. The acquiring entity is understood to be the group’s shipping affiliate.
The IMM consortium, which owns 100% of Hyundai LNG Shipping, acquired the LNG carrier division of Hyundai Merchant Marine (now HMM Co.) in 2014 as part of Hyundai Group’s restructuring efforts. The initial investment was approximately 500 billion won ($385 million).
In 2023, the IMM consortium held talks with HMM Co. regarding a potential sale of Hyundai LNG Shipping, but the two sides failed to reach an agreement on price expectations.
Hyundai LNG Shipping currently operates 12 LNG carriers, 6 LPG carriers, and 1 LNG bunkering vessel, making it South Korea’s largest specialized liquefied gas shipping company.
On a consolidated basis, Hyundai LNG Shipping posted revenue of 460.5 billion won ($355 million) last year, with operating profit of 100.8 billion won ($78 million) and net profit of 18 billion won ($13.9 million).
Completion of the transaction is subject to government approval, as LNG shipping is considered a sector closely tied to national security and is expected to undergo thorough regulatory review.
hskim@yna.co.kr
(End)
Copyright © Yonhap Infomax Unauthorized reproduction and redistribution prohibited.