The South Korean shipping firm announced on Thursday that Hahn & Company will take over 76% shares worth KRW300bn and simultaneously invest KRW100bn in a joint venture established by both parties.
Hanjin Shipping will be contributing 36 vessels including seven LNG ships for the deal.
“Hanjin Shipping will be handing over the company's dedicated service for Posco, Kepco, Glovis and Kogas along with all the assets, debts and contracts involved,” Hanjin Shipping said, adding that the joint venture will be launched in early April 2014.
“With this deal, Hanjin Shipping will be securing KRW300bn as well as transferring finances and debts of KRW1.4trn to the joint venture. Thereby Hanjin Shipping will be able to reduce its debt and improve balance sheets with additional liquidity,” Hanjin Shipping said.
The company's debt ratio is expected to be lowered from 987% as of September 2013 to 673% once the joint venture is launched.
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