Hyundai Samho Receives VLCC Order, Attracts New Investment

Greek shipping company Neda Maritime has ordered a 319,000 dwt very large crude carrier (VLCC) from South Korean Hyundai Samho Heavy Industries (HSHI), with an option for one more tanker, VesselsValue’s data shows.

Neda Maritime will pay USD 82 million for the newbuilding, which is scheduled to be completed in 2019.

The company would pay the same price for the optional vessel which would be also delivered in 2019.

Separately, HSHI, part of Hyundai Heavy Industries (HHI), informed it attracted KRW 300 billion (USD 266 million) investment via pre-initial public offering (IPO).

Under the agreement HSHI signed with IMM Private Equity, a Korean private equity firm, HSHI will issue 5.36 million new convertible preferred shares and IMM PE will pay KRW 300 billion to acquire the shares at KRW 56,000 per share.

HSHI plans to finalize the approval of the deal in early June and use the investment to lower its debt-to-equity ratio to 78.1% from current 96.4%.

That deal brings HSHI’s total market value at KRW 2.5 trillion won.

“IMM PE’s investment in HSHI today will also serve as an opportunity to re-evaluate the corporate value of HHI that takes up 83.7% of HSHI,” the shipbuilder said.

“The investment of IMM PE that has been active in investing in shipping and shipbuilding sectors including Hanjin Newport and Hyundai Merchant Marine’s LNG business shows its confidence in the recovery of shipbuilding industry for years to come,” HHI added.

During last year, HSHI received orders for the construction of fifteen ships worth USD 1.1 billion.

In March this year, HSHI won USD 240 million order to build four LNG-fueled Ice-Class IA Aframax tankers for Russian shipping company Sovcomflot.