Global private equity firm KKR has sold a portion of its stake in HD Hyundai Marine Solution via an after-hours block deal, raising some $450 million.

The transaction exceeded the initial target of 500 billion won ($365.8 million), delivering KKR a substantial return on its investment.

According to investment banking sources on Friday, KKR offloaded about 4.26 million shares, equivalent to a 9.5 percent stake in the company, after market close on Thursday.

The shares were priced at 145,500 won each, representing a 9.5 percent discount to the closing price of 160,800 won.

Union Bank of Switzerland and JPMorgan acted as joint bookrunners on the deal.

This marks KKR’s second block trade involving HD Hyundai Marine Solution in three months. Following the transaction, its stake fell from 19.52 percent to about 10 percent.

KKR initially acquired a 38 percent stake in 2021 for 653.4 billion won (43,000 won per share) and began realizing returns during the company’s IPO in April 2023. The latest proceeds are expected to contribute to a sizable net gain.

HD Hyundai Marine Solution continues to demonstrate strong performance in the ship maintenance, repair and overhaul sector, supported by tailwinds from affiliate HD Hyundai Heavy Industries' Master Ship Repair Agreement with the US Navy, signed in July 2024.

Investor sentiment remains positive, with Daol Investment & Securities raising its target price to 230,000 won, citing increasing demand for eco-friendly ship retrofitting solutions.

By Park Soo-bin (spark@heraldcorp.com)