当前位置：新闻动态
SM Line plans takeover of HMM for US$3 billion: reports
来源：shippingazette 编辑：编辑部 发布：2023/07/24 14:37:10
SOUTH Korea's smaller shipping company SM Line has put an end to months of speculation confirming that it plans to attempt a takeover of the much larger HMM when the shipping company officially goes up for sale.
In an exclusive interview with The Korea Economic Daily, SM Group chairman Woo Oh-hyun confirmed his intentions to bid for the container carrier, reports The Maritime Executive, Fort Lauderdale, Florida.
Incorporated in 2016, SM Line acquired assets including the route to the US from the failed Hanjin Shipping Co. The operation was rebranded SM Line in 2018 and today according to Alphaliner ranks as number 26 in the list of the top 100 carriers.
Speculation has been centering around SM Group's intentions for more than a year since it first became public that they were buying shares of HMM's stock.
The initial investment was just 60,000 shares in December 2021 but at the time the company said it was only an investment denying rumours that it was posturing for a takeover.
By mid-2023, SM Group held over five per cent of HMM's shares and then made a further purchase reported in a filing at the beginning of July. SM Group is now the third largest investor in HMM holding over 6.5 per cent of the stock after the state-run Korea Development Bank (KDB) and state-controlled finance group Korea Ocean Business Corp, each of which holds approximately 20 per cent.
SM Group told The Korea Economic Daily that it is prepared to bid up to approximately US$3 billion for HMM when the sale is officially launched.
The smaller shipping company reports it has cash and investments as well as bank lending lined up for nearly $3.5 billion. Based on their assessment of HMM, that is the maximum fair price and they told the newspaper they would drop out if the price exceeds that threshold by even a single won.
The Korean banks are yet to announce the planned structure of the offering or a timeline for the sale of the stakes in HMM.
In an exclusive interview with The Korea Economic Daily, SM Group chairman Woo Oh-hyun confirmed his intentions to bid for the container carrier, reports The Maritime Executive, Fort Lauderdale, Florida.
Incorporated in 2016, SM Line acquired assets including the route to the US from the failed Hanjin Shipping Co. The operation was rebranded SM Line in 2018 and today according to Alphaliner ranks as number 26 in the list of the top 100 carriers.
Speculation has been centering around SM Group's intentions for more than a year since it first became public that they were buying shares of HMM's stock.
The initial investment was just 60,000 shares in December 2021 but at the time the company said it was only an investment denying rumours that it was posturing for a takeover.
By mid-2023, SM Group held over five per cent of HMM's shares and then made a further purchase reported in a filing at the beginning of July. SM Group is now the third largest investor in HMM holding over 6.5 per cent of the stock after the state-run Korea Development Bank (KDB) and state-controlled finance group Korea Ocean Business Corp, each of which holds approximately 20 per cent.
SM Group told The Korea Economic Daily that it is prepared to bid up to approximately US$3 billion for HMM when the sale is officially launched.
The smaller shipping company reports it has cash and investments as well as bank lending lined up for nearly $3.5 billion. Based on their assessment of HMM, that is the maximum fair price and they told the newspaper they would drop out if the price exceeds that threshold by even a single won.
The Korean banks are yet to announce the planned structure of the offering or a timeline for the sale of the stakes in HMM.