HHI Secures KRW 1 Trillion Through Management Improvement Plan
Hyundai Heavy Industries (HHI) Group, the world’s largest shipbuilding group, announced today that it secured KRW (hereinafter ‘won’) 1 trillion to date this year as a part of the KRW 3.5 trillion Management Improvement Plan it has been implementing since June 2016 in an effort to rebuild trust in the market and improve its balance sheet.
Today HHI Group sold its 100% shares in Hotel Hyundai for 200 billion won to Hahn & Company, Korea’s leading private equity investment group managing 4 trillion won worth asset. In June this year, Hyundai Samho Heavy Industries (HSHI) also raised 400 billion won from IMM Private Equity via pre-IPO and Hyundai Mipo Dockyard (HMD) secured 350 billion won by offloading its shares in Hyundai Robotics, a holding company of Hyundai Heavy Industries Group.
In April this year, HHI disaffiliated its construction equipment and electro electric systems divisions as Hyundai Construction Equipment and Hyundai Electric & Energy System respectively, both independent corporates now. With all of these comprehensive measures HHI has implemented since June 2016, HHI has lowered debt-to-equity ratio to around 90% from 134% as of the end of the first quarter of 2016.
In the second half of this year, HHI Group continues to accelerate focusing on core businesses by liquidating poor performing overseas offices and incorporate firms including Hyundai Cummins (construction equipment engine) and Jake (wind power gear box), and selling non-core assets including Hi Investment & Securities.
An HHI official said, “With the sell-off of shares of Hotel Hyundai today, we have secured more than 3 trillion won to date this year and achieved about 90% of the 3.5 trillion management improvement plan.”