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Hanjin Shipping spinning off dry bulk business for $283m

Hanjin Shipping is aiming to secure KRW300bn ($283.2m) by spinning off its dedicated dry bulk business to private equity firm Hahn & Company.

Lee Hong Liang, Asia Correspondent

December 26, 2013

1 Min Read
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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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dry bulk shipping

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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