South Korean private equity firm IMM Investment Corp. is set to
purchase a 49.9% stake in Boryeong LNG Terminal Co. from SK
Innovation Co., in a deal that values the company at approximately
KRW600bn ($420mn) The Korea Economic Daily (TKED) reports.
The transaction will make GS Energy Corp., which already
co-operates the terminal, the controlling shareholder.
According to sources close to the matter cited by TKED,
GS Energy will acquire an additional 0.1% from SK Innovation,
securing management control and increasing its holding to 50.1%,
while IMM Investment will take a 49.9% stake. The deal underscores
a broader trend of private equity firms expanding into South
Korea’s energy infrastructure sector.
IMM Investment was selected as the preferred bidder over
Macquarie Asset Management and Canada’s Caisse de dépôt et
placement du Québec (CDPQ), as well as a consortium of local
financiers including Noh & Partners and Korea Investment &
Securities Co. Standard Chartered Securities acted as financial
advisor to SK Innovation the report adds.
GS Energy played a central role in identifying IMM as the buyer.
Sources indicate the company sought a partner with whom it could
closely collaborate on operational management of the terminal,
which has been structured as a 50:50 joint venture with SK
Innovation since its inception in 2013. IMM’s existing ties to the
GS Group which were strengthened when it acquired GS ITM, an IT
service provider for GS Group units, in 2018 , reportedly
reinforced its appeal. That earlier acquisition also helped GS
Group mitigate political scrutiny over intra-group
transactions.
According to TKED, under the new ownership, IMM
Investment and its affiliate, IMM Private Equity, will continue to
expand their presence in Korea’s energy infrastructure market.
Earlier this year, they acquired the remaining 20.77% stake in
Hyundai LNG Shipping, Korea’s leading LNG tanker operator, bringing
their holding to 100%. The move complements their broader strategy,
which spans midstream and downstream energy operations.
The Boryeong LNG Terminal itself, southwest of Seoul, plays a
critical role in South Korea’s energy supply chain. It stores and
regasifies imported LNG for distribution to power plants and
petrochemical firms. In 2024, the terminal reported an operating
profit of KRW93.9bn on revenue of KRW256bn, with estimated annual
earnings before interest, tax, depreciation and amortisation
(EBITDA) of KRW200bn.
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