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IMM faces obstacles in selling Hyundai LNG Shipping to foreign firm

Korea’s shipping industry officials urged the government on Monday to prohibit IMM Private Equity from selling Hyundai LNG Shipping to a foreign company, citing a potential threat to the nation’s energy security.

They made the request as the private equity firm (PEF) is said to be considering selling the shipping company to one of the potential buyers from the U.S., the U.K. and Denmark.

“Important energy resources should be shipped by vessels owned by Korean shipping companies, in order to enable stable supply amid the rapid-changing international situation,” the Federation of Korea Maritime Industries said in a statement. “However, the PEF is going in the wrong direction by trying to sell Hyundai LNG Shipping to a foreign buyer.”

The federation also raised concerns over the possibility of Korea’s know-how of shipping liquefied natural gas (LNG) being leaked, as well as the outflow of a massive amount of national wealth, given that Hyundai LNG Shipping has shipped for the state-run Korea Gas Corp. (KOGAS).

“This will affect the ongoing sales procedures of SK Shipping and Polaris Shipping, both of which ship strategic commodities,” the federation said.

IMM said it has yet to receive a call or a letter from the federation.

“We are open to selling Hyundai LNG Shipping to a Korean company, if the buyer offers us a reasonable price,” an IMM executive said.

Last month, the Ministry of Oceans and Fisheries hinted that it may put a brake on IMM’s sale of Hyundai LNG Shipping to a foreign firm.

“Considering the stable supply of LNG and possible leakage of the shipping company’s know-how, the government is keeping a close watch on the sale procedure,” the ministry said. “If necessary, we will review possible ripple effects, along with KOGAS and other relevant institutions.”

Hyundai LNG Shipping was formerly a business division of HMM, but it was sold to IMM during HMM’s liquidity crisis in 2014.

HMM, which is currently under supervision of the Korea Development Bank and the Korea Ocean Business Corp., reportedly failed in its attempt to acquire Hyundai LNG Shipping late last year, as it could not reach an agreement with the seller.
Source: The Korea Times

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