Pan Ocean's plan to sell Heungkuk bank falls through

Pan Ocean had decided to sell all its shares held in Heungkuk for business structure reform, the shipowner said in a regulatory filing to the Singapore Exchange.

Pan Ocean had nominated Hankuk Steel Wire Co as the preferred bidder in February and has negotiated with Hankuk on the proposed transaction.

“However, as a result of failure to reach a final agreement by both parties on 14 April 2014, the company decided not to proceed with the proposed disposal of all its shares in Heungkuk to Hankuk,” Pan Ocean said.

Pan Ocean had acquired 84.4% shares in the small Korean bank at a price of around $30.5m when it was formerly known as STX Pan Ocean, part of the STX Group.

Pan Ocean has undergone a restructuring process that allowed it to reduce its assets and liabilities to continue its operations.

Last year, the shipowner recorded a massive full year loss of $1.77bn and its revenue sank due largely to a smaller fleet size and decreased cargo volumes.