South Korea has conditionally approved the sale of Hyundai LNG Shipping to Indonesia's Sinar Mas Group after completing a foreign investment security review on November 6, officials told ChosunBiz.
The approval carries national security conditions, which have not been disclosed. Officials said the review considered the consequences of foreign ownership for energy security and liquefied natural gas (LNG) supply, including heightened geopolitical risk in the Middle East. The National Intelligence Service was among the bodies consulted.
Sellers IMM Private Equity and IMM Investment are targeting November 23 for payment of the remaining consideration and transfer of the shares. The date is still subject to agreement between the parties.
The deal transfers 100 per cent of Aegis One, the holding company for Hyundai LNG Shipping, to Sinar Mas affiliate Frontier Resources. It values the equity at about KRW400 billion ($293.7 million) and puts enterprise value at about KRW3.8 trillion.
Hyundai LNG Shipping operates 12 LNG carriers and six LPG carriers. It carries Korean LNG imports under long-term contracts with Korea Gas Corporation (KOGAS).
The consortium said these obligations would continue after the change of ownership. It added that four vessels serving KOGAS would keep operating under Korean law.
The Korea Shipowners' Association opposed the sale on energy security grounds. The deal had already cleared merger and technology protection reviews.
At signing, the consortium cited opportunities in Australian LNG projects and in Singapore's LNG bunkering market.
