South Korean shipping company Hyundai Merchant Marine (HMM) is on track with its plans to acquire 50 ownership in the Hyundai Pusan New-Port Terminal that was sold off in 2016 as part of its restructuring.
HMM told World Maritime News that currently, Waska (SPC) holds 50% stake in the terminal, PSA 40%, and HMM 10%.
According to a regulatory filing, the company will acquire 126.9 billion shares worth KRW 126.9 billion (USD 112.7 million) in a private equity fund, tentatively named as Yuanta-HPNT, together with Korea Ocean Business Corporation (KOBC).
“In the near future, the private equity fund Yuanta-HPNT will acquire 100% stakes of Waska’s current stake (50% of PHPNT) and then it will re-distribute the stakes to ‘HMM+KOBC (80%)’ and PSA (20%),” the company spokesperson explained.
“Overall, ‘HMM+KOBC’ and PSA will jointly operate Hyundai Pusan New-Port Terminal with equally 50%, 50% stakes respectively.”
The company announced the plans earlier this year as part of its Blueprint for 2022, saying it aims to finalize the deal by the end of the year.
Under the strategy for next four years, HMM set a target of building up its capacity to 1 million TEUs and posting USD 10 billion in annual revenue by 2022. In line with the plan, HMM ordered twelve 23,000 TEU and eight 15,000 TEU eco-friendly mega vessels in preparation for the IMO’s sulfur regulations starting from 2022.
The newly ordered mega vessels are expected to deliver from 2020 in sequential order.
HMM, which earlier owned the entire stake in the container terminal, disposed of the major stake in the facility from 2014 to 2016.
In May 2018, HMM and terminal operator PSA International acquired 10 and 40 percent stake in the Busan terminal, respectively.
Following the transaction, the terminal was renamed to Korea Shipping Partnership Pusan Newport Terminal.
World Maritime News Staff