- Kang Do-hyung, expresses confidence in the Harim Group-JKL Partners consortium.
- HMM’s staff union remains skeptical about fundraising, seeking details.
- Pan Ocean CEO rejects claims of no synergy between the companies.Ongoing negotiations prompt careful scrutiny amid financial capacity concerns.
South Korea’s Minister of Oceans and Fisheries, Kang Do-hyung, expressed confidence in the Harim Group-JKL Partners consortium as the preferred bidder for HMM. He dismissed concerns of a “winner’s curse” during a New Year briefing, emphasizing a cautious approach in consideration of taxpayers’ interests.
Consortium Choice and State Control
HMM’s largest shareholders, Korea Development Bank and Korea Ocean Business Corporation, selected the Harim-JKL consortium over Dongwon LOEX. The state-controlled acquisition in 2016 led to significant dilution of Hyundai Group’s stakes. Minister Kang affirmed the government’s commitment to taxpayers’ investment in HMM, stating, “Negotiations with Harim-JKL are ongoing, and we will look into it carefully.”
Union Skepticism and Fundraising Concerns
HMM’s staff union remains skeptical about Harim’s fundraising capability and its ability to lead the company. Despite Harim chairman Kim Hong-kuk’s assurance of secured financing, the union seeks detailed information on the funding. The ongoing negotiations prompt careful scrutiny amid concerns regarding the financial capacity of the preferred bidder.
Pan Ocean CEO Dismisses Synergy Concerns
Pan Ocean CEO Ahn Joong-ho, part of the Harim-JKL consortium, dismisses claims of no synergy between Pan Ocean and HMM. He highlights Pan Ocean’s engagement in both container and bulk shipping, addressing concerns about the difference in fleet sizes. With HMM as the eighth-largest liner operator and Pan Ocean ranked 76th in container shipping, Ahn deems concerns about synergy as nonsensical.
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Source: Container News
