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[Alpha Biz=(Chicago) Reporter Paul Lee] The search for a new owner of HMM (formerly Hyundai Merchant Marine), the nation's largest national carrier, is being delayed.
Dongwon and Harim participated in the main bidding for the sale on the 23rd of last month, and two weeks have passed since then.
According to industry sources on the 11th, the announcement of the preferred bidder is being delayed due to differences between the Korea Development Bank, the second-largest shareholder of HMM 1, and the Korea Maritime Promotion Agency, over what they want to acquire and how to deal with perpetual bonds.
The sale target is 57.88% of their HMM common shares, and the sale price is known to be around KRW 7 trillion, considering HMM stock prices and management premium.
Dongwon and Harim reportedly spent between 5 trillion won and 6 trillion won each, while the acquisition candidates' financing power was put to the test. The two companies have cashable assets far below the KRW 7 trillion level mentioned as the sale price, raising the possibility of failure in bidding. As of the end of last year, Harim's cashable assets were 1.6119 trillion won, and Dongwon's cashable assets were 516.9 billion won as of the first half of this year.
Harim, along with JKL Partners and Hoban Group, a domestic private equity fund (PEF) operator, has secured funds by selling securities and ships. Pan Ocean, a shipping company affiliated with Harim Group, recently disposed of 3,903,973 shares of Hanjin Kal for 162.8 billion won.
Dongwon is pursuing various measures such as capital increase, issuance of convertible bonds (CB) for subsidiaries, and procurement through financial institutions. It is also looking into ways to raise funds by issuing CBs on the condition that Starkist, the No. 1 tuna can company in the U.S., a subsidiary of Dongwon Industrial, will make an initial public offering (IPO).
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
