[Alpha Biz= Paul Lee] The IMM Consortium (IMM PE, IMM Invest, hereafter referred to as IMM) has secured a 100% stake in Hyundai LNG Shipping.
According to investment banking (IB) industry sources on Sunday, Hyundai LNG Shipping recently disclosed that it redeemed 20.77% of redeemable convertible preferred shares (RCPS) held by Daishin Private Equity (Daishin PE) for approximately 1.733 trillion KRW at the end of last year.
Daishin PE, which recouped its investment after three years, recorded an average internal rate of return (IRR) of about 10% per year. Daishin PE had invested 1.5 trillion KRW in Hyundai LNG Shipping with a contribution from Meritz Securities in 2022.
As a result, IMM Consortium's stake in Hyundai LNG Shipping increased from the previous 79.23% to 100%. This equity increase occurred as IMM extended Hyundai LNG Shipping's 2.17 trillion KRW acquisition financing until the end of 2026.
IMM had acquired Hyundai LNG Shipping from HMM in 2014 for 1.03 trillion KRW (including 500 billion KRW in debt). Two years ago, IMM attempted to sell Hyundai LNG Shipping back to HMM but failed due to a gap in the price expectations. At the time, IMM was asking for 7 to 8 trillion KRW, while HMM offered 3 trillion KRW.
Hyundai LNG Shipping's revenue and operating profit for last year were 460.4 billion KRW and 100.7 billion KRW, respectively, showing a 36% and 291% increase compared to the same period the previous year. This is attributed to the increase in global LNG shipping demand driven by the expansion of LNG production in the U.S. and the Russia-Ukraine war.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
