Senluo Merchant Marine buys HMM shares again, will it be merged?
SM Line and its affiliates spent US$646 million on June 20 to acquire a large stake in HMM (Han Shin Shipping), and its shareholding ratio rose to 5.52%, becoming the third largest shareholder of HMM, second only to Korea Policy Sex lender Korea Development Bank (20.79% stake) and South Korea’s state-controlled shipping industry financing agency Korea Ocean Commercial Corporation (19.96% stake).
SM Group acquired Korea Line and Korea Shipping Corp, and took over some of its assets after Hanjin Shipping went bankrupt, thereby establishing Senra Merchant Marine. Senra Merchant Marine has also acquired shares in HMM many times before, so the Korean shipping industry speculates Said that Sunro Merchant Marine may be eyeing a merger with HMM. However, HMM declined to comment, while Senro Merchant Marine insisted that the purchase of HMM shares was only for investment, and said it would not consider restarting the IPO plan.
In 2016, after HMM's debt-to-equity swap operation, the majority of the equity was owned by the Korean state. The chairman of the Korea Development Bank once said that it was time for the bank to let go of its control over HMM. But South Korea's new Minister of Oceans and Fisheries said after taking office that the time has not come for HMM to become independent, because despite the record profits the shipping industry has made in recent years, congestion has distorted the actual supply and demand situation.