The SM Group is poised to acquire HN Inc, currently undergoing a rehabilitation process. Over the past year, SM Group successfully acquired LIS and Kukil Paper, both KOSDAQ-listed companies in the midst of corporate rehabilitation procedures. The domestic investment banking (IB) industry is closely watching whether SM Group, recognized for its capabilities in restoring companies through legal management, can effectively bring HN Inc back to stability, despite the company’s previously high risk of bankruptcy.
According to industry insiders, the underwriter for HN Inc, Samil PWC Accountings, recently has chosen Taecho E&C, an affiliate of the SM Group, as the final acquirer. Taecho E&C is a company wholly owned by Woo Ji-young, the daughter of SM Group Chairman Woo Oh-hyun, holding a 100% stake.
The selling party designated Taecho E&C as the preferred buyer in December of last year and conducted the actual bidding on Jan. 17. However, with no other companies participating in the bidding process, Taecho E&C was confirmed as the acquirer. It has been reported that the selling party recently sent a formal notice to Taecho E&C, stating, “You have been selected as the contracting party.”
As of the end of last year, Chung Dae-sun, the husband of former anchorwoman Noh Hyun-jung, is the largest shareholder of HN Inc, holding an 81.3% stake. The second-largest shareholder is Woosu AMS, a KOSDAQ-listed company, with an 18.7% ownership. Chung Dae-sun is the grandson of the late Chung Ju-yung, the honorary chairman of the Hyundai Group.
HN Inc, a mid-sized construction company, operates the apartment brand ‘Heriot’ and commercial building brand ‘Sun&vill.’ While it once achieved consolidated revenue reaching up to 300 billion won, the company faced financial difficulties due to the real estate market downturn and challenges in the project financing (PF) market. Consequently, the company applied for corporate rehabilitation procedures in March of last year. As of the end of 2022, the revenue stood at 297.4 billion won, with an operating loss of 64.3 billion won.
