HMM, South Korea's largest LNG shipping firm, will join a bid to acquire a 100 per cent stake in Hyundai LNG Shipping after selling it to a local private equity firm, reports the Korea Herald.
According to industry sources, HMM (formerly Hyundai Merchant Marine) delivered its intent to participate in the takeover bid to IMM Private Equity and IMM Investment, which together own 100 per cent of Hyundai LNG Shipping.
Hyundai LNG Shipping is the largest LNG carrier operator in the country, operating a fleet of 16 LNG carriers and six LPG carriers.
It was part of the LNG shipping unit of HMM before the unit was sold 10 years ago to IMM for KRW500 billion (US$375 million) to resolve liquidity problems in 2014.
Since the investment companies began the tender process to sell Hyundai LNG Shipping in March this year, some 20 companies have made bids. Of them, four potential buyers from the United States, the United Kingdom, Greece and Denmark have been shortlisted by IMM.
The Federation of Korea Maritime Industries, the members of which consist of 54 organisations related to shipping, ports and logistics, recently expressed concern about the potential sale of Hyundai LNG Shipping to a foreign company, saying it could threaten domestic energy security.
Hyundai LNG Shipping signed long-term transportation contracts with Malaysian state-run energy company Petronas and Spanish energy firm Repsol in 2021. Last year, it logged consolidated sales of KRW398.1 billion and earnings before interest, taxes, depreciation and amortisation of KRW48.5 billion.
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