IMM Private Equity and IMM Investment Corp have short listed five overseas companies in a bid to sell South Korea’s largest LNG shipping company, according to local newswires.
US, UK, Greek and Danish companies were short listed from a preliminary bid held earlier this month for the sale of Hyundai LNG Shipping Co.
More than 20 worldwide financial investors were believed to have shown interest in the acquisition by signing non-disclosure agreements.
The market expects the sale to garner around Won600 bill ($467.29 mill) to Won700 bill.
Citigroup Global Markets Korea Securities is the lead manager in the sale.
Hyundai LNG Shipping was formerly the gas carrier division of HMM, previously known as Hyundai Merchant Marine. IMM bought the LNG shipping unit from cash strapped HMM for about Won500 bill in 2014.
According to South Korean newswires, IMM initially sought to find a domestic buyer for Hyundai LNG Shipping, as the company contributes to the transport of one of the country’s strategic cargoes. However, a suitable buyer was not found.
The company’s advantages highlighted were - Korea Gas Corp (KOGAS), the largest customer of Hyundai LNG Shipping, imports the world‘s largest volume of LNG as a single entity.
In addition, the fleet, consisting of 16 LNGCs, six LPGs and one LNG bunkering vessel, all have long-term shipping contracts of up to 20 years.
After the takeover, IMM expanded its overseas sales resulting in the sales more than doubling to Won398.1 bill last year from Won187.4 bill in 2020, and its operating profit before cost depreciation also more than tripled to Won48.5 bill last year from Won14.3 bill during the same period.
