HHIC Holdings kicks off sale of 3 energy subsidiaries

[THE INVESTOR] Hanjin Heavy Industries and Construction Holdings on July 13 began the process of selling three energy-related subsidiaries.

The companies -- Daeryun Power, Byeollae Energy and Daeryun E&S -- are to be sold as a bundle, and the sale will be conducted by Mirae Asset Daewoo. 

HHIC Holdings and Daeryun E&S each hold 29.17 percent and 50 percent in Daeryun Power and Byeollae Energy, respectively. Daeryun E&S, a gas supplier, is 100 percent owned by HHIC Holdings. Applications to enter the preliminary bidding process can be submitted until Aug. 4.

However, some in the industry have raised doubt on whether HHIC Holdings plans to go through with the sale. According to reports, it has hinted that the sale could be called off should its real estate in Incheon be sold off this year. The real estate sale would raise about 2 trillion won (US$ 1.75 billion) for the company, and make selling the three subsidiaries unnecessary.

By Choi He-suk (cheesuk@heraldcorp.com)