A consortium of IMM Private Equity Inc. and IMM Investment Corp. has now secured full ownership of Hyundai LNG Shipping, South Korea’s leading operator of liquefied natural gas (LNG) tankers. This development has intensified speculation within the industry that a renewed attempt to sell the LNG tanker operator could be imminent, reports Korea Economic Daily.
Full Ownership
The IMM Private Equity (PE) consortium has now secured full ownership of Hyundai LNG Shipping, increasing its stake from 79.23% to 100%. This was achieved through Hyundai LNG Shipping’s repurchase and cancellation of 2.63 million redeemable convertible preference shares (RCPS), equivalent to a 20.77% stake, for 173.3 billion won. These RCPS were previously issued in a 2022 funding round.
The IMM consortium initially acquired Hyundai LNG Shipping from HMM Co. (formerly Hyundai Merchant Marine) in 2014 for 1.5 trillion won ($1 billion). This recent move to gain complete ownership has sparked speculation that IMM may be preparing to sell Hyundai LNG Shipping again, especially given the improved market conditions and the company’s significantly increased earnings in the past year.
New Stake Sale
Industry experts suggest that IMM Private Equity’s (PE) acquisition of full ownership in Hyundai LNG Shipping signals a renewed effort to sell the LNG shipping operator, particularly due to favorable market conditions and the company’s significantly improved earnings.
In 2023, IMM PE, based in Seoul, considered selling Hyundai LNG Shipping, with HMM as the leading potential buyer. However, negotiations fell through due to disagreements over the company’s valuation.
At that time, IMM PE reportedly sought a sale price of approximately 800 billion won, including a premium for management control. Current market speculation indicates that Hyundai LNG Shipping could now command an even higher valuation, with the latest share transaction implying a corporate value of around 830 billion won.
Hyundai LNG Shipping demonstrated strong financial performance in the past year, reporting a 36% increase in revenue to 460.4 billion won and a substantial 291% surge in operating profit to 100.7 billion won. This growth was primarily driven by the thriving shipbuilding and LNG transport sectors.
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Source: Korea Economic Daily
