South Korean Hyundai Merchant Marine (HMM) is currently experiencing interest from several companies that may be looking to buy shares in the carrier from its state-controlled owner. 

This is clear from comments made by Kang Seoghoon, chairman of the state-operated Korea Development Bank, which is a part of the owners, as cited by Bloomberg News.

According to Kang Seoghoon, a deal could be signed this year already, as ”a not small number of companies” have shown interest in a share holding.

In early 2023, Korea Development Bank and Korean Ocean Business Corporation informed that they intended to hire a group of advisors to assist them in divesting their HMM stakes of nearly 21 percent and 20 percent, respectively.

The group of Korean state investors also includes Korea Credit Guarantee Fund and National Pension Service with stakes of respectively 5 percent and 4.3 percent.

Overall, state-controlled Korean companies thus command more than half of the carrier, and the combined stake could increase to 74 percent if the two largest shareholders exchanges convertible bonds into shares.

Based on Tuesday’s share price, HMM’s market value totals KRW 9,335.8bn (USD 7.3bn).

Korea Development Bank obtained its stake in relation to a rescue package in 2017 when the carrier needed support due to major losses stemming from a decline in global freight rates. Back then, the carrier tried to get support from foreign investors to no avail.

After the competitor Hanjin Shipping went bankrupt and left freight goods with a value of USD 14bn stranded at sea for months, HMM was estimated to come in charge of transporting a fourth of South Korea’s total exports, wrote the Wall Street Journal in January 2017.

It was thus necessary to keep HMM above water to keep South Korean exports going.

English edit: Kristoffer Grønbæk