이 기사는 2020년 04월 08일 08시00분 thebell에 표출된 기사입니다

South Korea’s Hyundai Department Store Group has hired Credit Suisse (CS) to run an auction for its cable TV and broadband services arm, Hyundai HCN, in a move seemingly aimed at inviting SK Telecom to the planned bidding.

Hyundai Department Store Group has recently mandated advisers to sell Hyundai HCN, sources close to the matter said on April 2. Credit Suisse will act as financial advisor to the conglomerate, while Deloitte Anjin will serve as accounting advisor and Shin & Kim as legal advisor. An auction process for the company is expected to begin later this month, though a detailed timeline has yet to be confirmed.

There have been few cases where affiliates of Hyundai Department Store Group got a hand from investment banks in their previous M&A transactions. For example, when Hyundai Green Food acquired Everdigm Corp. in 2015, it 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.

So it is notable that the conglomerate has decided to partner with Credit Suisse this time. Industry watchers said client companies of the Switzerland-based investment bank have probably been considered to make such a decision.

“CS has used a strategy to increase chances of a sale by narrowing down a group of potential buyers in advance,” an industry insider said. “Likewise, CS seems to have already tapped some of the Big Three mobile carriers before expressing its confidence in selling Hyundai HCN.”

Credit Suisse’s major clients include SK Telecom, one of the potential buyers of Hyundai HCN. The investment bank advised SK Telecom on a previous deal where SK Broadband, a 100 percent subsidiary of the telco giant, merged with Tbroad. It reportedly emphasized to Hyundai Department Store Group that it would be able to invite SK Telecom to an auction. Credit Suisse also has worked with other affiliates of SK Group on several deals including the sale of SKC Kolon PI and SK Networks’ sale of its gas station business.

Credit Suisse is reportedly continuing a marketing campaign, telling potential bidders that not only SK Telecom but LG Uplus are interested in buying Hyundai HCN, in a move seemingly aimed at attracting more bidders, which could eventually lead to a higher selling price. Hyundai Department Store Group is said to be seeking more than 600 billion won for the company.

When LG Uplus acquired cable operator CJ HelloVision (now LG HelloVision) last year, the average value per user for CJ HelloVision was estimated at about 380,000 won. When simply multiplying this by the number of Hyundai HCN’s subscribers, the company could have a price tag of roughly 511 billion won. But the value per user of Hyundai HCN could be estimated to be higher than its peers, because its service areas include regional centers like Busan and Daegu as well as some key districts in Seoul.

When considering the degree of market concentration measured based on the Herfindahl-Hirschman Index (HHI), both SK Telecom and LGUplus would have a good chance of getting the green light from the anti-trust watchdog if one of them is chosen to be an exclusive bidder. KT, the current market share leader in pay TV services in the country, is also still able to participate in the bidding as there is room for conditional clearance from the watchdog.

(By reporters Rho Ar-rum and Choi Ik-hwan)