IMM Investment Acquires Boryeong LNG Terminal in 559 Billion Won Deal

Forming a Consortium with KB Balhae Infra for the Acquisition

The IMM Investment and KB Balhae Infra consortium has agreed to acquire Boryeong LNG Terminal for 559 billion won.

According to the investment banking (IB) industry on November 17, the IMM Investment-KB Balhae Infra consortium has signed a share purchase agreement (SPA) to acquire a 49.9% stake in Boryeong LNG Terminal held by SK Innovation. The acquisition price is 559 billion won.

Previously, on October 2, SK Innovation selected IMM Investment as the preferred bidder for half of its stake in Boryeong LNG Terminal. IMM Investment formed a consortium with KB Asset Management's Balhae Infrastructure Investment Company, and together they outcompeted foreign asset managers such as Macquarie Asset Management and Caisse de depot et placement du Quebec (CDPQ).

For the transaction, IMM Investment will establish two special purpose companies (SPCs), Gaia One LLC and Gaia Two LLC, to invest in the shares, while KB Balhae Infra will invest through its own SPC, Youngbo Green Hub LLC. IMM Investment will acquire approximately 36% of the shares for about 400 billion won, while KB Balhae Infra will acquire 14% for about 160 billion won.

Boryeong LNG Terminal is a business entity jointly established and operated by SK Innovation and GS Energy. It is equipped with seven LNG tanks, one LPG tank, and two berthing docks. With an LNG storage capacity of 1.4 million kiloliters and an annual processing capacity of 7 million tons, it is the largest private terminal in South Korea. The company has net assets of 314.1 billion won and total liabilities of 1.2778 trillion won. Going forward, IMM Investment will jointly operate Boryeong LNG Terminal with GS Energy.

Screenshot of Boryeong LNG Terminal website