SM Group Chosen as Preferred Bidder to Take Over STX Corp

A consortium spearheaded by South Korea’s Samra Midas Group (SM Group) has been selected as the preferred bidder for compatriot STX Corporation which was put on sale by its creditors. 

As disclosed in a listing to Korea Exchange, the company is to revert in three months on whether the two parties agreed on the details of the sale as creditors, including Korea Development Bank and Nonghyup Bank, intend to negotiate with SM Group about the sale of STX Corporation.

A total of four companies submitted their offers last week to buy STX Corporation, an affiliate company of financially-troubled shipbuilder STX Offshore & Shipbuilding Co that filed for court receivership with the Seoul Central District Court in May, 2016.

STX Corporation must find a way to recapitalize in order to avoid being delisted from the stock market.

According to reports cited by Yonhap news agency, SM Group plans to inject some KRW 130 billion (USD 113 million) in STX Corporation.

The shipping firm has been very busy over the recent period, investing in expansion and capacity bolstering.

Namely, in 2016, SM Group acquired bankrupt Hanjin Shipping’s Asia-US route. After taking over the route, SM Group established SM Line, a new unit which started its first service on March 8.

The Group has also purchased five 6,655 TEU boxships for USD 60 million previously owned by bankrupt Hanjin Shipping.

World Maritime News Staff

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