HMM container ship

A container ship of HMM (Photo: HMM)

 

On February 7, the privatization deal of HMM, Korea's largest container shipping company, was stopped. Harim, the group that has allied with a domestic private enterprise to work with investor bank HMM, announced on the stock market that it will withdraw from the acquisition of Korea's largest shipping line.

Harim stated, "Negotiations were conducted on the main contents of the agreement between bondholders, but no agreement was reached." The group, best known as a poultry processing business, has also entered the shipping industry since 2015 after taking over Pan Ocean, one of South Korea's major shipowners.

The group also commented: "No private company can easily accept a deal that only makes it the major shareholder without guaranteeing actual management rights."

Korea Development Bank (KDB), one of HMM's two current investors, said: "We were not able to reach an agreement over different views on some details."

HMM Shipping Line was placed under state control in 2016 during a period of severe financial difficulties for many Korean shipping lines. After HMM was guaranteed by the state to continue its existence, the shipping line agreed to HMM's subsidiary, Hanjin Shipping, had to declare bankruptcy.
 

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Source: Phaata.com (According to Splash247) 

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