Bidding starts for South Korea’s Hanjin Shipping Co

By BizClik Admin

Hanjin Shipping Co. has received an initial five offers for its Asia-US business.

South Korea’s largest container line filed for bankruptcy in August due to excess capacity, a slowdown in global trade, and falling demand for shipping.

Hyundai Merchant Marine Co., Korea Shipping Association, Korea Line Corp. and private equity firm Hahn & Co. are among those that have expressed an initial interest. The Seoul Central District Court, overseeing the receivership, has not disclosed who the fifth bidder is, fuelling much speculation.

“The real issue will be the price and how one evaluates intangible assets,” said Ma Ji-hwang, a senior researcher at Hana Institute of Finance in Seoul. “That’s why the due diligence process will be important to shed light on what assets will be available in the sale. The Asia-U.S. shipping operation is pretty much what’s going to be left of Hanjin.”

The South Korean government said that Hyundai Merchant will serve as the national flag carrier when carrying the country’s exports and is looking to improve the local shipping industry’s competitiveness.

“Exports are very important for South Korea,” Ma said. “That’s why the government will try to bolster Hyundai Merchant and buying Hanjin’s asset could help build up scale.”

Business Review Australia & Asia's October issue is now live

Follow @BizRevAsia and @MrNLon on Twitter.

Business Review Asia is also on Facebook. 

SOURCE: [Bloomberg]

Share

Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia

Sustainability

Huawei smartwatch goes for gold with Ultimate Edition

Lifestyle

How IKEA India plans to double business, triple headcount

Corporate Finance