HHIH raises 800 billion won in subsidiary share saleHyundai Heavy Industries Holdings (HHIH) said Tuesday a private placement for its wholly-owned ship repair unit has attracted 800 billion won ($720 million).
The sale of Hyundai Global Service shares comes ahead of a planned initial public offering.
HHIH said in an emailed statement that it will use the funds for investments into robotics, artificial intelligence and hydrogen businesses.
HHIH is a holding company of Hyundai Heavy Industries, a shipbuilder.
HHIH signed a deal with U.S. private equity fund KKR to sell its 38 percent stake, or 1.52 million shares, in Hyundai Global Service for 646 billion won, the company said.
In addition, HHIH will receive 150 billion won from Hyundai Global Service under the deal with KKR.
Hyundai Global Service posted 1 trillion won in sales in 2020 and an operating profit of 157 billion won, compared with 56.4 billion won in 2017, HHIH said.
KKR valued Hyundai Global Service at about 2 trillion won, HHIH said.
HHIH plans to hold its shareholders meeting on March 25, where it will discuss a 5-to-1 stock split.
The post-split shares are slated to trade on the Korea Exchange from April 12.