Hyundai LNG Shipping, South Korea’s largest LNG carrier shipowner, is about to change hands, with private equity firm IMM preparing to sell it to Indonesia’s Sinar Mas Group for 400 billion won ($274 million).
Sources in the South Korean market have revealed that the IMM consortium is poised to sign a share purchase agreement with Indonesia’s Sinar Mas Group to acquire 100% ownership of Hyundai LNG Shipping. However, the company remains open to bids from other potential buyers.
Negotiations between Sinar Mas Group and IMM have been ongoing for several months, with the former seeking to acquire a controlling stake in Hyundai LNG Shipping. Although no exclusive negotiation rights have been granted, Sinar Mas Group appears to be leading the bidding race as IMM plans to exit its 11-year investment.
In 2014, IMM and its affiliated subsidiaries acquired Hyundai LNG Shipping from HMM for 1.03 trillion won, with approximately 400 billion won contributed as equity investment.
In 2023, IMM attempted to resell Hyundai LNG Shipping back to HMM, but the deal fell through due to valuation differences. IMM’s prolonged search for a buyer subsequently raised market concerns about Hyundai LNG Shipping’s competitiveness and long-term stability.
The latest acquisition moves by Hyundai LNG Shipping have sparked strong opposition within South Korea’s shipping industry. The Korea Shipowners’ Association warned that foreign acquisitions could jeopardize national energy security, pointing out that Hyundai LNG Shipping—as the core carrier of LNG and liquefied petroleum gas (LPG) under long-term contracts with Korea Gas Corporation (KOGAS)—operates 12 LNG carriers and 6 LPG carriers that form the backbone of the nation’s gas supply chain.
The Korea Shipowners’ Association stated that the sale could lead to the loss of strategic assets and sensitive operational technologies overseas. It emphasized that South Korea’s share of LNG carrier operations is steadily declining—projected to drop from 38.2% in 2024 to 12% by 2029, and to zero by 2037—and noted that foreign acquisitions would accelerate this decline.
It remains unclear whether South Korean regulators will approve the transaction. In 2023, European buyers initiated an acquisition attempt, but it was effectively blocked due to the South Korean government’s concerns over losing control of national energy transportation capabilities. Subsequently, Hyundai Merchant Marine (HMM) entered negotiations as a domestic alternative, but talks stalled over pricing differences.
For Sinar Mas Group, the acquisition of Hyundai LNG Shipping would mark a significant expansion into deep-sea energy transportation. The group already owns shipping companies including Sinar Mas LDA Maritime and Golden Agri Maritime, which primarily serve its industrial and commodities business sectors. Should the deal gain approval, it would position Sinar Mas Group to establish a key foothold in LNG logistics at a time of sustained strong demand for natural gas in Asia. However, the transaction currently sits at the intersection of commercial interests and national strategic concerns—government approval may still determine the final outcome.