Hapag-Lloyd Excluded from HMM's Second Round of Bidding

A container vessel of HMM (Photo: HMM)

Many sources in Korea said that Hapag-Lloyd, the only foreign bidder for HMM, has been ruled out of the privatisation process by state creditors Korea Development Bank (KDB) and Korea Ocean Business Co (KOBC).

Previously, the Federation of Korea Maritime Industries and the Busan Port Development Council issued a joint statement about the possibility of the Korean shipping line falling into foreign hands, the statement read: “Selling HMM to Hapag-Lloyd could lead to an overseas leakage of Korea’s priceless national assets, such as maritime logistics know-how accumulated for decades and container transportation and terminal system management".

Harim Group, which controls Korean line Pan Ocean, has linked up with a local private equity firm for its bid. It is joined in the second round by LX Holdings and Dongwon Group, Korean firms with interests in logistics.

In the context that HMM's state creditors keen to get the sale completed by the end of the year, due diligence will now take place with a preferred bidder set to be announced by early November.

HMM is the largest shipping company in South Korea. Its fleet consists of 88 container ships, five bulk carriers, ten oil tankers, four heavylift ships as well as three PCTCs under construction.

Source: Phaata.com (According to Splash247)

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