South Korea’s Hyundai Cement
shares surged over 20 percent on Dec. 26 on expectations that its controlling stake sale plan may sail through smoothly.
The stock jumped as much as 28 percent in morning trade at 32,400 won (US$26.97) following reports that a total of seven parties have made it onto the shortlist of bidders for a 84.56 percent stake in Hyundai Cement on Dec. 23.
This reflects investors’ positive sentiment on the prospect of the sale process as the number of shortlisted parties have exceeded market expectations of four to five.
Those on the list include IMM Private Equity, United Asset Management Company, Hyundai Sungwoo Holdings and a consortium led by LK Investment Partners, according to a source familiar with the deal.
The majority stake up for sale, worth 350 billion won (US$291.37 million), is owned by creditors led by the state-run Korea Development Bank.
The due diligence process will begin on Jan. 2 and the next round of bidding is expected to take place in February.
In the first nine months of this year, Hyundai Cement reported 275.7 billion won in sales and 39.4 billion won in operating profit.
Korea Development Bank, Hana Financial Investment and Samil PricewaterhouseCoopers are managers for the sale.
By Park Han-na (email@example.com)