Korea’s Harim Group has confirmed its interest in submitting a new bid for the country’s largest container shipping company, HMM, if it is put up for sale again. Earlier this year, a deal to acquire a 57.9% stake in HMM fell through after negotiations between Harim and the government-controlled sellers, Korea Development Bank (KDB) and Korea Ocean Business Corp (KOBC), stalled over terms.
Harim Group, in partnership with private equity firm JKL Partners, had initially offered KRW 6.4 trillion (USD 4.9 billion) for the majority stake, outbidding seafood conglomerate Dongwon Group by KRW 200 billion. However, the sale collapsed in February due to disagreements over the government’s proposed conditions, including a strict lock-up period.
Since the failed transaction, there have been conflicting messages from Korean authorities regarding the future of the sale. In March, Korea’s Minister of Oceans and Fisheries, Kang Do-hyung, indicated that discussions were underway about resuming the sale process. However, by June, KDB Chief Kang Seog-hoon suggested there were no immediate plans to restart the bidding process, citing the need to reassess the government’s strategy for the shipping industry.
Despite the uncertainty, Harim’s chairman, Kim Hong-kuk, recently stated that his group remains open to revisiting the deal if the opportunity arises. He also raised doubts about the government’s commitment to privatizing HMM, noting that the previous attempt at a sale had not materialized.
As of now, KDB and KOBC retain control of HMM, including the company’s bonds, leaving the future of the carrier in limbo.
Source: Alphaliner
