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Hyundai Samho Heavy gets major pre-IPO investment

Apr 25,2017
Hyundai Samho Heavy Industries, a shipbuilding affiliate of Hyundai Heavy Industries, attracted a 300 billion won ($265.79 million) investment in a pre-IPO placement from a local private equity firm, the company said Monday.

Under the deal signed with IMM Private Equity, one of the top-tier private equity firms in the country, Samho Heavy will issue 5.36 million new shares to be acquired by the firm for 56,000 won each.

The shares will be issued in convertible preferred stock, which includes an option for the holder to convert the preferred shares into a fixed number of common shares following the deal.

Based on the price offered by the acquirer, Samho Heavy’s market value has increased to 2.5 trillion won.

Final confirmation of the deal will be made at the shipbuilders’ board of directors meeting in June.

The shipbuilder has turned around its economic situation to record 171.5 billion won in operating profit last year by winning orders to build 15 ships worth $1.1 billion, amid difficult market conditions worldwide.

By Kim Jee-hee