Hyundai Merchant Marine (HMM) has today signed a stock purchase agreement (SPA) to sell its stake in its financial affiliate Hyundai Securities to KB Financial Group for KRW 1.24tr ($1.08bn) as part of its ongoing restructuring scheme.
“Consulting with Korea Development Bank (KDB), HMM plans to use the net proceeds from selling Hyundai Securities, excluding the secured loans with shares, for the stable operation of HMM,” a statement from HMM said today.
KB Financial Group, South Korea’s largest consumer lender, was selected as the preferred bidder on March 31. The sale transaction is expected to be completed during this quarter, following due diligence work.
HMM said the speed with which the deal has been done will “secure liquidity and accelerate its restructuring plans”. It is hoped the sale will “stabilise” the business from July.
A financial management team from HMM’s lead creditor KDB has been “closely” monitoring HMM’s liquidity status since April 4.
Last week, HMM said it would accelerate charter renegotiations, debt restructuring and other programmes in order to meet its July restructuring target. The company expects to complete charter renegotiations with foreign shipowners by the end of April or early May.
