The US-based investment firm KKR has decided to acquire a 38 per cent stake in South Korean marine services provider Hyundai Global Service (HGS).
On February 23, Hyundai Heavy Industries Holdings (HHIH) said it inked an agreement with KKR to sell the stake in its subsidiary HGS for KRW 646 billion (about $582 million).
The 38 per cent stake corresponds to 1,520,000 shares in the company, according to a stock exchange filing issued by HHIH.
HGS also paid out a cash dividend amounting to KRW 150 billion to HHIH. This resulted in HHIH raising a total of KRW 800 billion through the pre-initial public offering (IPO) financing of HGS.
As informed, the funding will support Hyundai’s businesses including AI, robotics and hydrogen.
HGS is a spin-off of Hyundai Heavy Industries (HHI) and provides all-round services in the shipbuilding, power generation segment and electric field of marine equipment. Specifically, HGS covers retrofit, maintenance and technical support for ship life cycle from delivery of ships to demolition.