The light at the end of the tunnel just grew brighter for South Korea’s Hyundai Merchant Marine (HMM). Its parent Hyundai Group has been offered KRW1trn ($874m) by fellow Korean firm KB Financial to take over a 22.56% stake in another subsidiary, Hyundai Securities.
If the deal goes through, HMM, the largest shareholder of Hyundai Securities, could repay most of its KRW400bn debt borrowed last November from sister company Hyundai Elevator with its interest in the brokerage as collateral. The remaining proceeds would be used to cover imminent payables owed to customers. HMM also owes banks a further KRW4.8trn in debt. The bid for brokerage Hyundai Securities is far higher than earlier valuations of KRW650bn as KB Financial found itself in a bidding war with rivals.
“Once HMM’s stabilisation is completed, all of the benefits will be returned to stakeholders, and HMM will put in every effort to realise this. In order to do so, we sincerely ask for active support and understanding of our stakeholders, including shipowners, creditors, public bond holders, shippers, suppliers and vendors so HMM can be on the right track as soon as possible,” an HMM official said earlier this week.