South Korean shipbuilding company Hyundai Mipo Dockyard has decided to sell its shares in a Korean chemical and auto parts manufacturer KCC Corporation, according to a South Korea stock exchange filing.
Namely, the company sold all of its 397,000 shares in KCC Corporation, raising KRW 142.1 billion (USD 121 million), Finance Asia cited a source familiar with the matter.
The company said that the move was made in a effort to “enhance the financial stability.”
The shares were sold at a price of KRW 358,000 per share, which represents a 5.5 percent discount compared to the daily closing price on Tuesday.
Hyundai Mipo Dockyard’s parent, Hyundai Heavy Industries (HHI), received approval to carry out its KRW 3.5 trillion (USD 3.02 billion) self-rescue plan at the beginning of July, which is expected to be implemented by 2018.
In an attempt to fight liquidity woes, HHI employed intensive reform measures, worth around KRW 3.9 trillion, which include the sale of corporate shares and treasury stocks, issuance of perpetual bonds, re-engineering of HHI’s portfolio to center more on its core businesses, and a restructure of its business organization by spinning off its industrial machinery business.
As a result of these measures, the company recorded a profit of KRW 325.2 billion in the first quarter of 2016, putting an end to a nine-quarter losing streak.
World Maritime News Staff