Private equity fund (PEF) H&Q Korea sold a 4.45% equity stake in Hyundai Elevator via an after-hours block deal.
On the 30th, according to the investment banking (IB) industry, H&Q disposed of the entire exchangeable bonds (EB) issued by Hyundai Holdings Company through an exchange request method on the 28th via the special-purpose company (SPC) Metropolitan Holdings. The EB's exchange target is about 4.9% of Hyundai Elevator common shares held by Hyundai Holdings Company. Citigroup Global Markets Securities served as the block-deal bookrunner.
H&Q emerged in 2023 as Chair Hyun Jeong-eun's white knight, investing 310 billion won in Hyundai Network (now Hyundai Holdings Company). Chair Hyun Jeong-eun had been locked in a management control dispute with Schindler, a Swiss elevator company that was the No. 2 shareholder of Hyundai Elevator, after being pushed into a liquidity crunch.
Of the 310 billion won invested by H&Q, 80 billion won was used for EB investment. The remaining 230 billion won was used to acquire redeemable convertible preferred shares (RCPS) and convertible bonds (CB) of Hyundai Holdings Company, respectively. The RCPS and CB carry rights that allow Hyundai Holdings Company to exercise a sell option (call option) after a certain point in time.