Four potential buyers submitted preliminary offers for Hanjin Heavy Industries & Construction in a process conducted by Korea Development Bank (KDB)’s mergers and acquisitions consulting team and Samil PwC on Monday (October 26).
They were named as a consortium of KDB Investment and Keistone Partners, APC Private Equity, a consortium of NH Private Equity and Opus Private Equity, and Korea Real Estate Investment & Trust (KOREIT).
A 63.44% stake in the shipbuilder held by KDB and other domestic financial institutions, and a 20.01% stake owned by Philippine financial institutions, including Rizal Commercial Banking Corporation, have been put up for sale. Shareholdings held by Philippine financial institutions have tag-along rights.
KDB Investment and Keistone Partners are actively seeking strategic investors for their consortium, while NH PE and Opus PE plan to acquire the shipbuilder through their corporate financial stability blind-pool fund. The consortium also participated in the final round of bidding for Doosan Mottrol Corporation.
APC PE, which acquired STX, was named as the preferred bidder for Heung-A Shipping earlier this year. KOREIT, the only strategic investor that joined the race, has construction company Dongbu Corporation as its subsidiary.
Hanjin Heavy Industries suffered from capital erosion in 2018 due to problems at its Subic shipyard in the Philippines. It recorded revenue of 825 billion won ($732 million) and operating income of 17.1 billion won in the first half of this year. (Reporting by Se-Jun Jo)