SEOUL– Korea Shipbuilding & Offshore Engineering Co. (KSOE) said Tuesday that it has decided not to push for an initial public offering of Hyundai Samho Heavy Industries Co., one of its three affiliates.

Under the decision, KSOE will buy some 4.65 million shares in Hyundai Samho Heavy Industries from IMM Private Equity, a local equity fund, for 409.7 billion won (US$322 million).

The purchase, slated for Feb. 1, would raise KSOE’s stake in Hyundai Samho Heavy Industries to 95.7 percent.

In 2017, IMM Private Equity signed a deal with KSOE to buy the stake on condition that Hyundai Samho Heavy Industries would be listed on the local stock market.

A KSOE official said the two firms have agreed to terminate the contract as Hyundai Samho Heavy Industries is unlikely to be valuated properly due to the sluggish stock market.

KSOE, the subholding company of shipbuilding, oil refining and machinery conglomerate HD Hyundai, has three subsidiaries — Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries.

Source: Yonhap News Agency