Aspersions have been cast on the sale of HMM to the Harim Group-JKL Partners consortium after negotiations with the South Korean flagship carrier’s state-controlled shareholders stalled.
Preferred bidder
On 18 December 2023, Harim-JKL was chosen as the preferred bidder for HMM, which came under the control of Korea Development Bank and Korea Ocean Business Corporation after swapping debt for equity in 2016.
KDB began moving to wean HMM off its care after the liner industry saw record earnings during the Covid-19-fuelled boom.
Three year moratorium
South Korean media reports imply that Harim Group, a poultry processor that acquired dry bulk outfit Pan Ocean in 2015, wants a three-year moratorium on the conversion of HMM bonds into additional shares.
The reports suggest that if an agreement is not reached by 6 February, the deal with Harim could fall through.
HMM’s labour unions have renewed their opposition saying the ongoing rebound in freight rates amid the Red Sea crisis will bring fresh funds to the company, which might evaporate if it is absorbed into Harim. The unions also suggest that HMM’s plans to grow its bulk carrier fleet may be scuttled as Pan Ocean’s fleet is larger.
They also said that Hapag-Lloyd’s break from THE Alliance, of which HMM, Ocean Network Express and Yang Ming Marine Transport are members, adds uncertainty to HMM’s competitiveness.
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Source : Container news
