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Photo=HMM |
[Alpha Biz= Kim Jisun] South Korea’s largest shipping company, HMM, has been confirmed as the preferred bidder for the acquisition of SK Shipping, whose largest shareholder is the private equity firm Hahn & Company.
According to sources in the shipping industry on Thursday, HMM is actively considering acquiring certain business segments of SK Shipping. HMM posted revenue of KRW 11.7 trillion and an operating profit of KRW 3.5128 trillion last year, achieving an operating profit margin of 30%.
Its cash reserves are estimated to be around KRW 14 trillion. However, approximately 80% of HMM’s sales come from container shipping, highlighting the need for business diversification. As a result, HMM is strongly considering using its cash reserves to acquire SK Shipping’s bulk carrier business, which transports crude oil and gas.
Hahn & Company acquired a 79% stake in SK Shipping from SK Group in 2018 for approximately KRW 1.5 trillion. Since then, it has streamlined non-core operations and sold aging vessels as part of a business restructuring. The firm has been actively pursuing the sale of SK Shipping since last year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
