Purchasing of the Long Beach Terminal of Hanjin

South Korea’s SM Group, is currently researching the purchase of a 54% stake in the Long Beach Terminal of Hanjin, through its subsidiary Korean shipping (KLC) alongside Hyundai Merchant Marine (HMM). Both KLC and HMM will purchase half of the stake, but as they are suffering financial pressure, neither will be able to make the purchase by themselves.  

HMM has formed a consortium and submitted a proposal to the court, but did not disclose which companies it will cooperate with. The purchase will cost at least 400 billion KRW, including the 300 billion KRW loan from 6 overseas financial institutions and 100 billion KRW for management of Long Beach terminal.

SM group said the purchase of the stake will ensure stabilization for its workers and business which has already taken over for Hanjin. In addition, HMM will make a good use of American lanes previously managed by Hanjin and it will benefit them to join the 2M shipping alliance. The purchase will require HMM and South Korea government’s support.

References:

http://info.jctrans.com/news/cgs/201611302301972.shtml