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Photo: HMM |
[Alpha Biz= Kim Jisun] SEOUL – HMM has restarted negotiations to acquire 37 vessels from SK Shipping, signaling a renewed push for a trillion-won M&A deal as the shipping giant prepares for its relocation to Busan.
According to industry sources on July 31, talks between HMM and Hahn & Company — SK Shipping’s largest shareholder — have resumed after months of stagnation. Hahn & Company had named HMM the preferred bidder in February, and HMM conducted due diligence, but the sale process stalled amid political uncertainties surrounding Korea’s presidential election.
“Negotiations restarted after the appointment of a new Oceans and Fisheries Minister, who oversees the Korea Ocean Business Corporation, the de facto manager of HMM,” one source noted.
HMM is seeking to purchase 23 VLCCs (very large crude carriers) and 14 LPG carriers from SK Shipping, along with related business operations.
HMM’s valuation: USD 870 million (approx. ₩1.2 trillion)
Hahn & Company’s asking price: Around ₩2 trillion
To support its higher price, Hahn & Company has offered an option to extend SK Group’s long-term shipping contracts for 10 years, which would ensure stable revenue streams. Unlike container ships — whose earnings fluctuate with global freight markets — SK Shipping’s tanker fleet is largely backed by long-term contracts, making it an attractive acquisition target for HMM.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
