IMM consortium owns 100% of Hyundai LNG Shipping; Stake sale eyed

IMM is expected to make a fresh attempt to unload its stake in the tanker operator, at a higher price this time

Hyundai LNG Shipping, Korea’s top LNG tanker operator
Hyundai LNG Shipping, Korea’s top LNG tanker operator
Seok-Cheol Choi 2
2025-04-07 11:21:25 dolsoi@hankyung.com
Mergers & Acquisitions

A consortium of IMM Private Equity Inc. and IMM Investment Corp. has secured full ownership of Hyundai LNG Shipping, South Korea’s top liquefied natural gas (LNG) tanker operator, stoking speculation that a renewed sale of the LNG tanker operator could be on the horizon.

The consortium, which first acquired Hyundai LNG Shipping from HMM Co., formerly Hyundai Merchant Marine, in a 1.5 trillion won ($1 billion) deal in 2014, recently increased its stake to 100% from 79.23%, according to investment banking industry sources on Monday.

The stake increase results from Hyundai LNG Shipping retiring a tranche of redeemable convertible preference shares (RCPS) after purchasing the shares from Daishin Private Equity (Daishin PE) and other investors.

According to a recent public disclosure filed with financial regulators, Hyundai LNG Shipping bought back and cancelled 2.63 million RCPS, equivalent to a 20.77% stake in the company, for 173.3 billion won. This raised the IMM consortium’s ownership from 79.23% to 100%.

IMM Private Equity's logo
IMM Private Equity's logo

The RCPS had been issued during a 150 billion won investment round in 2022 that included Daishin PE and Meritz Securities Co. The transaction was tied to a refinancing of the acquisition debt used by the IMM consortium to fund the original purchase.

SETTING THE STAGE FOR NEW STAKE SALE

Industry watchers said IMM’s full ownership of Hyundai LNG Shipping will set the stage for a fresh attempt to offload the LNG shipping operator, especially given improved market conditions and the company’s sharply rebounding earnings.

In 2023, IMM, a Seoul-based private equity firm, explored a sale of Hyundai LNG Shipping, with HMM emerging as the top negotiator, but talks collapsed over valuation disagreements.

At the time, IMM PE was said to be targeting a sale price of around 800 billion, including a management control premium.

An HMM container ship
An HMM container ship

Market chatter now suggests that Hyundai LNG Shipping could command an even higher price, with the latest transaction implying the shipper’s corporate value at around 830 billion won.

Hyundai LNG Shipping posted strong financial results last year, with revenue up 36% from the previous year to 460.4 billion won and operating profit surging 291% to 100.7 billion won, helped by the buoyant shipbuilding and LNG transport sector.

Hyundai LNG Shipping is the country’s top player in the LNG transport business, operating a fleet of high-specification LNG carriers under long-term contracts.

Analysts say the company’s stable cash flow and sector tailwinds make it an attractive target, especially as global energy markets remain in flux.

Write to Seok-Cheol Choi at dolsoi@hankyung.com

In-Soo Nam edited this article.
#Shipping & Shipbuilding #Asset management #investment banking #Private equity #Private debt #Korean stock market #IMM Private Equity #IMM PE #IMM Investment #Hyundai LNG Shipping #HMM #redeemable convertible preference shares #RCPS #Daishin Private Equity #Daishin PE #Meritz Securities

HMM seeks to acquire parts of SK Shipping for $1.4 bn from Hahn & Co.

HMM seeks to acquire parts of SK Shipping for $1.4 bn from Hahn & Co.

An HMM container ship (File photo by Incheon Port Authority) HMM Co., South Korea’s largest ocean carrier, is seeking to buy SK Shipping Co., excluding its liquefied natural gas (LNG) transportation business, for an estimated 2 trillion won ($1.4 billion), investment banking industry sour

IMM PE puts South Korea’s top travel agency Hanatour up for sale

IMM PE puts South Korea’s top travel agency Hanatour up for sale

Hanatour is Korea's top travel agency IMM Private Equity Inc., a Seoul-based private equity firm, is selling its controlling stake in Hanatour Service Inc., South Korea’s top travel agency, four years after its purchase.According to investment banking industry sources on Tuesday, IMM PE h

Korea’s HMM among shippers benefiting from growing Red Sea crisis

Korea’s HMM among shippers benefiting from growing Red Sea crisis

HMM is Korea's largest container ship operator The Red Sea crisis, disrupting the passage of ships through the Suez Canal, a central artery for global trade, is a bane for exporters looking for ships and a boon for shipping firms poised to gain from rising freight costs, analysts said.The Shang

Megazone Cloud receives $343 mn from MBK, IMM PE in Series C funding

Megazone Cloud receives $343 mn from MBK, IMM PE in Series C funding

Megazone Cloud is the Korean business partner of Amazon Web Service (AWS) Megazone Cloud Corp., South Korea’s largest managed cloud service provider (MSP), has completed its Series C funding round with a combined 450 billion won ($343 million) in investment from MBK Partners and IMM Priva

IMM puts Hyundai LNG Shipping on sale

IMM puts Hyundai LNG Shipping on sale

Hyundai LNG Shipping's vessel (Courtesy of Hyundai LNG Shipping) IMM put Hyundai LNG Shipping, South Korea’s top liquefied natural gas (LNG) tanker operator, on sale in a predicted $1.7 billion deal.IMM Private Equity and IMM Investment Corp. are processing the sale, while Citigroup Globa

Hyundai Samho’s IPO faces hurdle on steel prices, baffling IMM PE

Hyundai Samho’s IPO faces hurdle on steel prices, baffling IMM PE

Hyundai Samho Heavy shipyard Back in the early 2010s, Hyundai Samho Heavy Industries Co. was a strong shipbuilder earning 800 billion won ($696 million) a year on sales of 4.8 trillion won until the shipbuilding industry was drawn into a crisis trigged by financial woes in Europe.To get out of

(* comment hide *}