HMM, the largest LNG carrier in Korea, is reportedly participating in the final bidding for the acquisition of Hyundai LNG Shipping, the country's largest liquefied natural gas (LNG) transportation company.
According to industry sources on the 1st, HMM held a board meeting and decided to participate in the final bid for Hyundai LNG Shipping. The bidding deadline is the 2nd. It is reported that HMM has not yet submitted its final bid proposal. The expected purchase price is estimated to be in the low 300 billion KRW range.
Hyundai LNG Shipping began the sale process with a preliminary bid in March, and private equity fund (PEF) operators IMM Private Equity and IMM Investment are handling the sale.
Hyundai LNG Shipping owns 16 LNG carriers dedicated to LNG transportation, making it the largest LNG carrier in Korea, and also owns six LPG (liquefied petroleum gas) carriers. It originated from HMM's LNG transportation division. During liquidity difficulties in the era of Hyundai Merchant Marine, HMM sold its LNG-related business division to IMM PE and others in 2014.
Since rumors of Hyundai LNG Shipping's sale surfaced in 2021, the acquisition battle was initially among four foreign shipping companies from the United States, the United Kingdom, Greece, and Denmark. However, concerns within the industry about Hyundai LNG Shipping being sold to foreign capital grew, leading to a reversal of the situation.
An HMM official remained cautious about the acquisition status, stating, "Nothing has been decided yet."
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