Although the sale would result in a loss for Hyundai Heavy, the move is aimed at raising cash and streamlining the group’s operations to focus on its main business.

Since taking over HI in 2008, the group poured in more than 1 trillion won (US$ 878 million). The price being considered in the market ranges between 500 billion won and 600 billion won.

According to finance industry sources, Hyundai Heavy group is looking for a buyer through EY Han Young, and the accounting firm plans to send out information to potential buyers from this week.

Although a number of companies have been shortlisted as potential buyers, the shortlisted firms themselves are said to be showing little interest.

Both Korea Investment and Securities and Shinhan Financial Group are said to have expressed no interest in the deal, despite being considered as likely buyers.

Rumors, some highly detailed, of HMC Investment Securities and Meritz Securities reviewing plans to acquire HI were circulated, but both have quashed them saying they have no such plans.

While HI represents an opportunity for a sudden growth spurt, experts say that the company’s skewed portfolio makes it less attractive than it may appear at first glance.

One of HI’s strengths is its retirement pension products, but with its heavy reliance on Hyundai Heavy companies, market watchers have raised doubts whether the company can maintain the connection under a new owner.

With nationwide players expressing little interest, provincial finance firms have also been cited as potential buyers.

However, no real offers have been put in yet, prompting market watchers to express doubts over the sale.

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