Oceans Ministry says there are no plans to sell state-backed HMM

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Oceans Ministry says there are no plans to sell state-backed HMM

Published: 07 Mar. 2024, 18:30

SEO JI-EUN
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Minister of Oceans and Fisheries Kang Do-hyung [YONHAP]

Minister of Oceans and Fisheries said there are currently "no plans for the resale of HMM,” Korea's largest container shipper following the failed acquisition attempt by the domestic firm Harim.

Oceans Minister Kang Do-hyung emphasized HMM's significance as a "company heavily funded by the government,” adding, "We are establishing basic plans with the principle of enabling it to be operated soundly," following a briefing at the Government Complex Seoul on Thursday.

HMM's main creditors, the state-run Korea Development Bank (KDB) and the Korean Ocean Business Corporation (KOBC), had previously selected a consortium comprised of Harim's Pan Ocean and JKL Partners as the preferred bidders for the 6.4 trillion won ($4.9 billion) sale of HMM. However, negotiations collapsed last month after the creditors refused to accept Harim's requests.

HMM will remain under creditor management, with the KDB and KOBC retaining 57.9 percent of HMM shares.

Industry insiders believe a potential resale soon is unlikely considering heightened uncertainty in the shipping sector due to factors like the Red Sea shipping crisis challenging global logistics.

BY SEO JI-EUN [[email protected]]