South Korean liner operator SM Line Corporation has become a minority shareholder in its larger compatriot rival HMM, with a 0.49 per cent stake, reports SeaNews.
Minority stakeholder
SM Line, which withdrew its initial public offering in November, said on December 29 that it had paid US$14 million for 613,438 of HMM’s shares.
The company sought to downplay any speculation that it plans to acquire HMM, of which the government is planning to gradually release its grip, asserting that the stake purchase is purely for investment.
The state’s shares in HMM are held through policy lenders Korea Development Bank (KDB) and Korea Ocean Business Corporation which have total holdings of around 44 per cent but could exceed 70 per cent as they still hold convertible bonds, which can be changed into HMM shares.
At a press conference the same day to announce the success of the government’s Five-Year Plan to revive the maritime sector, the Minister of Oceans and Fisheries, Moon Sung-hyeok, opined that it is not yet time for the government to dispose of its stake in HMM.
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Source: SeaNews
