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Two shareholders ready to sell 40 % stake

HMM, privatization on the horizon

by Port News Editorial Staff

South Korea is to begin privatizing HMM, one of its most important shipping companies.

The carrier’s two biggest shareholders, Korea Development Bank and Korea Ocean Business Corp, have reportedly expressed their intention to sell their 41% stake in the company, a total of 198.8 million shares, worth 6 billion dollars.

Not only that, the two shareholders also made it clear that they intended to put their bonds, convertible into 200 million shares, on the market.

The shares and bonds that KDB and KOBC have represent 58.7% of HMM’s share capital. They are to be sold through an open auction.

The company’s third investor, SM Line, which now owns 6.5% of the carrier’s shares, is reportedly willing to make an offer of up to around $3.5 billion for HMM once the sale of the company is officially underway.

Translation by Giles Foster