Hyundai Sungwoo Holdings Co., an auto components manufacturer formerly known as Hyundai Sungwoo Automotive Korea, has reportedly tendered its bid to take over Hyundai Cement Co., South Korea’s seventh largest cement manufacturer that was once part of the same family-owned conglomerate.

According to multiple sources from the investment bank industry on Wednesday, creditors and sales advisors of Hyundai Cement including Korea Development Bank, Samil PricewaterhouseCoopers, and Hana Financial Investment Co. have shortlisted five potential buyers including Hyundai Sungwoo Holdings, Ssangyong Cement Industrial Co., Halla Cement Corp., United Asset Management Company (UAMCO), and IMM Private Equity Inc.

Hyundai Sungwoo Holdings is an auto parts maker led by Chung Mong-yong, younger brother of Chung Mong-sun, former chairman of Hyundai Cement. If Hyundai Sungwoo Holdings succeeds in buying Hyundai Cement, it would mean regaining of control of once the same family-owned company.

Hyundai Cement was established in 1969 after spinning off Hyundai Engineering & Construction Co.’s cement business division. Hyundai Cement was led by Chung Soon-young, younger brother of Hyundai Group founder late Chung Ju-yung, who later formed Sungwoo Group consisting of Sungwoo Construction Co., Hyundai Sungwoo Automotive Korea, and Sungwoo Resort. Soon-young’s eldest son Mong-yong took over his father’s business but with Hyundai Cement overzealously standing surety for Sungwoo Construction, it eventually applied for credit-led workout program in 2010.

Meanwhile, along with Hyundai Sungwoo Holdings, industry competitors Ssangyong Cement Industrial and Halla Cement have reportedly participated in the bid to take over Hyundai Cement. As the two contenders have production bases along the country’s coastline, each one’s potential marriage with Hyundai Cement that has its production bases inland is expected to create great business synergy. Sources tipped that financial investors UAMCO and IMM Private Equity could join up with strategic investors Hyundai Sungwoo Holdings, Halla Cement, and Ssangyong Cement if necessary to buy creditors’ 84.56 percent shares in Hyundai Cement that are up for grabs.

Last year, Hyundai Cement raised an operating income of 52.5 billion won ($44 million) on sales of 363.1 billion won. As of the end of September this year, its operating profit reached 39.3 billion won on sales of 275.7 billion won.

By Kang Doo-soon and Hong Jang-won

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