Hanjin Shipping Considering Sale of H-Line Stake
Korean shipping company Hanjin Shipping Co confirmed in a stock exchange filing today that it was considering the sale of its stake in H-Line Shipping.
“Although we are reviewing the sale of H-Line Shipping stake as part of a financial restructuring plan, no decision has been specifically defined so far,” the filing reads.
Hanjin said that a final decision on the matter is expected to be reached within three months.
The sale is estimated to be worth around USD 139.35 million.
Hanjin Shipping has a 22.2% stake in H-Line Shipping, an entity created in 2014 following Hanjin’s offloading of dry bulk and LNG shipping businesses for USD 298 million.
Private equity firm Hahn & Company holds a 77.8% stake in the business.
H-Line Shipping has a fleet of 36 vessels totaling in approximately 5.4 million DWT, comprised of 20 bulkers and 7 LNG carriers.
Separately, Hanjin Shipping has been linked to a merger with another Korean shipping major- Hyundai Merchant Marine- by local media.
However, earlier last week HMM refuted the reports saying that it had not received such a request from the county’s government.
Both companies have been facing difficult times over the past two years and have opted to divest their stakes in businesses such as terminal assets, tanker shipping and dry bulk shipping so as to focus on their respective container shipping operations.
World Maritime News Staff