Advisors hired to sell Hyundai HCN Hyundai Department Store Group plans to start an auction process later this month
Translated by Ryu Ho-joung 공개 2020-04-06 08:00:48
이 기사는 2020년 04월 06일 08:00 thebell 에 표출된 기사입니다.
South Korea’s Hyundai Department Store Group has mandated advisers to sell its cable TV and broadband services arm, which has been named as a possible candidate for sale in the M&A market for years.Hyundai Department Store Group has hired advisers to seek a sale of multiple system operator Hyundai HCN, sources familiar with the matter said on March 31. Credit Suisse will reportedly act as financial advisor to the conglomerate, while Deloitte Anjin will serve as accounting advisor and Shin & Kim as legal advisor.
It is notable that Hyundai Department Store Group is partnering with Credit Suisse as there have been few cases where affiliates of the conglomerate got a hand from investment banks in their previous M&A transactions.
For example, when Hyundai Green Food acquired Everdigm Corp. in 2015, the conglomerate’s food services arm received financial advice from EY Han Young, with Deloitte Anjin and Kim & Chang serving as accounting advisor and legal advisor, respectively. Also, Hyundai Home Shopping did not hire a financial advisor when it bought Hanwha L&C (now Hyundai L&C) in 2018, and just received legal and accounting advice from Yulchon and EY Han Young.
Now that a team of advisors for the sale of Hyundai HCN has been appointed, other advisory firms will likely move fast to win the mandate for advising potential buyers. The seller already made it clear that it would run an auction for the company rather than sell it through private negotiation.
Hyundai Department Group plans to start an auction process for Hyundai HCN later this month. The conglomerate is said to have already tapped major domestic telco companies, including LG Uplus and SK Telecom, which have been named as potential bidders for the cable TV operator.
Some market watchers raised doubts on whether the auction for Hyundai HCN would attract sufficient interest. Indeed, its rival D’live was also put up for sale. On the other hand, few strategic investors would be interested in buying the company except the country’s Big Three mobile carriers including KT, LG Uplus and SK Telecom. Financial investors are less likely to join the bidding for the company either given complex regulatory issues and the market outlook.
If a deal is signed despite these challenges, this would mark the first time that Hyundai HCN changes hands in 18 years since Hyundai Department Store acquired it in 2002.
Hyundai HCN recently announced a plan to split off its cable TV business as a separate legal entity which will continue to be called Hyundai HCN, a move seen as preparation for the planned sale. The parent company will change its name after split-off, which is slated to be completed no later than November 1.
(By reporter Rho Ar-rum)
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