Monday, December 23rd, 2013
SEOUL, KOREA - Hyundai Group will secure 3 trillion won in cash as a way to shore up its shipping uint by selling off the liquefied natural gas carriers and bulk ships.
Meanwhile, Hyundai Shipping is set to dispose of shares of all its non-essential affiliates and securities holdings. According to financial regulator and company sources on December 20, Hyundai Group would make an announcement including these plans.
Of the assets that the group will put on sale, the largest is the LNG fleet hitherto owned by Hyundai Shipping whose value is estimated at more than 1 trillion won. The shipping unit's bulk carriers are valued at about 500 billion won.
The group will also sell off the shares of Hyundai Securities held both by Hyundai Shipping (25.9%) and the securities unit itself (9.83%). Its combined value is estimated at 360 billion won, but may get bigger if premiums for taking management control are taken into account. The shares of financial service providers such as KB Financial Group and Shinhan Financial Group held by Hyundai Shipping, estimated at 300 billion won, will be sold to rescue Hyundai Shipping.
In addition, another 417.5 billion won will be procured from an initial public offering on Hyundai Logistics (200 billion won) and a capital increase on Hyundai Elevator (217.5 billion won). The group will also dispose of the Banyan Tree Club and Spa Seoul and the group's training center in Yangpyeong in eastern Gyeonggi Province.