The IMM Consortium (IMM PE · IMM Investment · hereinafter IMM) secured 100% equity of Hyundai LNG Shipping.
On the 6th, according to the investment banking (IB) industry, Hyundai LNG Shipping announced through a recent public disclosure that it redeemed 20.77% of the redeemable convertible preferred shares (RCPS) held by Daishin Private Equity at approximately 173.3 billion won at the end of last year.
Daishin Private Equity, which recouped its investment after three years, recorded an annual average internal rate of return (IRR) of about 10%. Daishin Private Equity invested 150 billion won in Hyundai LNG Shipping in 2022 with funding from MERITZ Securities.
As a result, the IMM Consortium's equity in Hyundai LNG Shipping increased from the previous 79.23% to 100%. This equity expansion occurred as the IMM Consortium extended its acquisition financing of 217 billion won for Hyundai LNG Shipping until the end of 2026.
IMM acquired Hyundai LNG Shipping from HMM in 2014 for 1.03 trillion won (including 500 billion won in liabilities). Two years ago, it attempted to resell Hyundai LNG Shipping to HMM but failed due to a difference in price expectations. At that time, IMM reportedly wanted 700 billion to 800 billion won, while HMM offered 300 billion won.
Hyundai LNG Shipping's sales and operating profit last year were 460.4 billion won and 100.7 billion won, respectively, representing increases of 36% and 291% compared to the same period last year. This is interpreted as being influenced by the expansion of liquefied natural gas (LNG) production in the United States and the increase in global LNG maritime transportation demand due to the Russia-Ukraine war.