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Red-stained Hanjin to offload terminal stake

Red-stained Hanjin to offload terminal stake

Seoul: Hanjin Shipping Co., South Korea's largest container-shipping line, plans to sell 49 percent of a terminal operator at the nation's busiest port and sell new shares to boost finances after posting a first-quarter loss. The company expects to raise 200 billion won (US$177 million) by selling the stake in Hanjin New Port Co., which runs facilities in Busan, according to a regulatory filing yesterday. The Seoul-based shipping line, which didn't identify the buyer, will retain 51 percent. The company also expects to raise 252 billion won by selling 10.9 million new shares next month for working capital, it said in a separate filing.?Hanjin posted a first-quarter loss of 135 billion won as it laid up ships and competition on transpacific routes capped rates increases. Container lines suffered industrywide losses last year as slumping trade and price wars hammered fees.?"The company needs to take every step possible to cut costs," said Um Kyung A, an analyst at Shinyoung Securities Co. "Losses during the recession were heavy." [27/05/10]

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