South Korean shipping company Korea Line Corp., part of SM Group, has decided to withdraw from the race for Hanjin Shipping’s stake in US Port of Long Beach container terminal, the firm revealed in its stock exchange filing.
The company withdrew its bid after local media reported it may propose a joint acquisition of the stake in Hanjin’s terminal to Hyundai Merchant Marine (HMM).
Hanjin’s 54% stake in terminal operator Total Terminals International (TTI), which operates two facilities in Long Beach and Seattle, is estimated to be worth around KRW 400 billion (USD 342.5 million).
The remaining 46% stake is held by Swiss-based shipping company Mediterranean Shipping Company (MSC).
Last month, Korea Line inked a KRW 37 billion (USD 31.4 million) agreement to purchase the Asia-US route network from Hanjin. Scheduled to be finalized on January 5, 2017, the deal includes Hanjin’s business network and client information related to the route and subsidiaries and logistics management systems in seven countries.
California’s container terminal also attracted the attention of further two shipping giants as MSC and HMM jointly placed a bid for Hanjin’s stake in the terminal in early December.
Following Hanjin’s court receivership filing in late August 2016, the company started selling assets to decrease its debt.
World Maritime News Staff