Seoul Korea - Daeryun E&S, a retail and wholesale LNG supplier, will be reborn as an energy holding company for its parent Hanjin Heavy Industries Group. According to Financial Supervisory Service on December 14, the company will buy back 2,470,464 shares (6.37%) of Daeryun Power held by POSCO Engineering & Construction by the end of January next year. As part of the transaction, it will purchase 1,865,200 shares on December 19 and the remaining 605,264 shares by January 31, 2015.
Currently Daeryun E&S is the largest shareholder to Daeryun Power with a stake of 22.29 percent, together with Hanjin Heavy Industries that holds the identical share. Once it takes over the stake hitherto held by POSCO E&C, its stake will rise to 28.66 percent. Daeryun E&S plans to acquire the remaining 22.29-percent share held by Hanjin Heavy Industries.
In addition, the company will purchase the 50-percent stake in Byulnae Energy, a retail energy supplier for residential customers in the area, held by Hanjin Heavy Industries. The book value of Daeryun Power shares held by Hanjin Heavy is estimated at 50 billion won while that for Byulnae Energy at 60 billion won.
In order to secure the fund for the transactions, Daeryun E&S will hold an initial public offering valued at 100 billion won in January next year. The company passed the preliminary screening for the IPO in October after applying for the screening with the Korea Exchange in August.