KKR Offloads 9.5% of HD Hyundai Marine Shares for $450 Million

Key Takeaways

Sector: Transport Infrastructure & Services (traditional).
Geography: South Korea.

Analysis

Global private equity firm KKR has sold 8.5% of its stake in HD Hyundai Marine Solution through a block trade worth up to KRW 560 billion ($410 million).

The transaction involved approximately 3.81 million shares priced between KRW 145,000 and KRW 148,000 each, representing a 7.96% to 9.83% discount to the company's recent closing price of KRW 160,800. The deal was managed by JPMorgan and UBS.

With this sale, KKR has raised between KRW 550 billion ($402 million) and KRW 560 billion ($410 million), continuing its successful divestment from the South Korean marine services company.

This marks the second major sale in 2024, following KKR’s February transaction in which it sold a 4.49% stake for KRW 295 billion ($216 million).

KKR initially acquired a 38% stake in HD Hyundai Marine Solution in 2021 for approximately KRW 650 billion ($483 million), purchasing shares at KRW 43,000 each. The company went public on the KOSPI in April 2023, after which KKR began reducing its position.

Following the latest sale, KKR's remaining ownership in the company drops to around 11%, equivalent to roughly 4.94 million shares.

HD Hyundai Marine Solution is valued at KRW 7.2 trillion ($5.3 billion) and specializes in ship repair and after-sales marine services. The company has benefited from increased global demand in the maritime and shipbuilding sectors.

This latest move reinforces KKR's strategy of capitalizing on favorable market conditions while securing strong returns on its Korean investments.