SM Line has been vigorously increasing its stake in HMM, but has repeatedly stressed that it is only a "financial investment"!
Until HMM sold to the door, ambitious SM Group founding chairman Woo Oh-hyun finally like the outside world frankly: we want to take over (take over)HMM!!
With HMM's controlling shareholder Korea Development Bank (KDB) and Korea Ocean Business Corporation (KOBC) increasing and eager to exit, about who will take over Korea's largest, the world's eighth largest container liner company HMM, has become the world's largest shipping industry's biggest hot spot.
By continuing to increase HMM shares has become HMM's third largest shareholder SM Group's founding chairman Woo Oh-hyun, finally admitted that his goal is to take HMM.
It is understood that Samra Midas (SM) Group is the controlling shareholder of South Korean shipping company SM Line. Previously, SM Line's continuous increase in HMM shares made the outside world speculate that it wanted to acquire HMM, but SM Line has repeatedly stressed that the increase in shares is only for investment.
And just after HMM revealed that SM Group had increased its stake to 6.56 per cent more than a week later, Woo Oh-hyun revealed his plan to acquire HMM.
Facing the South Korean media, Woo Oh-hyun emphasized: "I am 72 years old, and I want to complete the national (South Korea) shipping industry for the last time. I have received a large number of requests from inside and outside SM Group to take over HMM, and I have prepared up to 4.5 trillion won for this acquisition!
Woo Oh-hyun believes that 4.5 trillion won is enough to buy the 40.65 percent stake held by the Korea Development Bank (KDB) and Korea Ocean Business Corporation (KOBC). Including the shares held by the National Annuity and Credit Guarantee Fund, the Korean government holds 52% of HMM's shares.
SM Line itself was formed after SM Group bought the remaining operations of bankrupt Hanjin Shipping in 2016. In the same year, following a debt-for-equity swap by the Korea Development Bank (KDB), the main creditor, the government took over HMM.
Market watchers said the HMM-SM Line merger made sense because for South Korea, having only one ocean shipping company was "more pragmatic".
It is reported that the Korea Development Bank (KDB) and other state-backed institutions hold convertible bonds (about 20% of the shares) or will make the South Korean government hold HMM shares to 74%, and make HMM's sale price increased by 2 billion US dollars, which means that the buyer if the full state-owned shares to buy may need to spend about 8 billion US dollars.
There is news that this is a potential buyer to acquire HMM a big obstacle!
He warned: "The Korea Development Bank (KDB) is discussing the conversion of HMM's convertible bonds into stocks. If this happens, we will not participate in the bidding."
local media quoted investment banking sources as saying that the Korea Industrial Bank may convert less than half of the convertible bonds to reduce the purchase price. That could mean that even if SDB and KOBC sell their holdings, the South Korean government will remain Hyundai's largest shareholder.
In March this year, HMM's two major shareholders-Korea Development Bank (KDB) and Korea Ocean Business Corporation (KOBC)-announced the establishment of a sale advisory group to assist them in selling nearly 21% and 20% of HMM shares.
And just last month, HMM's largest shareholder, Korea Development Bank (KDB) Chairman Kang Seog-hoon recently said that there are currently a number of companies revealed the South Korea's largest, the world's eighth-ranked shipping company's acquisition intention, HMM The sale agreement may be signed within the year!
Alphaliner latest data show that SM Line is the 26th shipping company in the world in terms of transportation capacity, with 15 ships and a total transportation capacity of 68620TEU, of which 12 ships are owned and 59918TEU are owned.
If the acquisition is successful, the HMM brand is likely to exit the world!
HMM originated in the Hyundai Group in 1976 was established by the Asian Merchant Marine (Asia Merchant Marine), when the Hyundai Group's subsidiary Hyundai Heavy Industries built a large number of ships, because of the 1970 s oil crisis was buyers abandoned, Hyundai Group was forced by the situation at the time to set up Asian Merchant Shipping.
In 1983, the company changed its name to Hyundai Merchant Marine (Hyundai Merchant Marine).
In 2016, Hyundai Merchant Marine suffered a financial crisis and was separated from Hyundai Group. Korea Development Bank and Korea Marine Commercial Corporation took over and became its main shareholders.
The next year, in 2017, Hanjin Shipping went bankrupt, making Hyundai Merchant Marine South Korea's largest shipping company.
In 2020, the company changed its name to HMM (Han Xin Shipping)
HMM, the 47-year-old shipping brand, survived the 2016 century crisis and has been "abandoned" by its founding owner, Hyundai Group. After changing its name from Hyundai Merchant Marine (Hyundai Merchant Marine) to HMM (Han Xin Shipping) for three years, it will face being "abandoned" by shareholders again!
However, the acquisition of Hanjin Shipping's part of the heritage and legacy of SM Line has hardly made any achievements in the past 7 years. The industry has no sense of existence. If the parent company SM Group acquires HMM, SM Group will undoubtedly mercilessly "abandon" the HMM brand and then welcome its eighth largest subsidiary in the world: SM Line.
Source: one shipping