KDB Industrial Bank Commences Sale of HMM Management Rights in Collaboration with Korea Maritime Promotion Corporation

KDB Industrial Bank Initiates Sale of HMM Management Rights

The Korea Development Bank (KDB) has taken the first step in selling the management rights of Hyundai Merchant Marine (HMM), in conjunction with the Korea Maritime Promotion Corporation. The joint sale process aims to finalize a stock purchase contract before the end of this year.

Efforts to Secure a Preferred Bidder

Following the establishment of a sales advisory group by KDB and the Korea Maritime Promotion Corporation on April 10, a feasibility study was conducted to assess the potential for successfully selling the management rights. The study concluded that initiating the sale of HMM management rights within this year would be the most suitable course of action.

The sale will adhere to the National Contract Law, with an open competitive bidding process. The objective is to identify a preferred bidder through the second stage of bidding and complete a stock purchase contract by the close of this year.

Shareholder Structure and Strategy

A total of 399 million shares will be sold, accounting for approximately 38.9% of the shares, taking into consideration dilution and the permanent bonds held by KDB and the Korea Maritime Promotion Corporation.

In accordance with HMM’s redemption rights, the remaining perpetual bonds will be gradually converted, in stages, to maximize market stability. A comprehensive plan for dealing with convertible stocks will be established in consultation with the prospective acquirer.

Fostering Global Competitiveness

Highlighting the significance of HMM to the national economy, both KDB and the Korea Maritime Promotion Corporation expressed their commitment to actively adapt to the ever-evolving shipping industry and ensure HMM’s global competitiveness. The sale of management rights aims to secure a capable acquirer who will lead the sustainable development of HMM.

Reporter: Cho Seung-ri

[비즈니스포스트] KDB Industrial Bank begins the process of selling management rights to HMM.

On the 20th, the Korea Development Bank announced that it would issue a public notice for the joint sale of HMM management rights together with Korea Maritime Promotion Corporation and begin the sale process.

▲ KDB Industrial Bank and Korea Maritime Promotion Corporation began the process of selling HMM management rights with the aim of signing a stock purchase contract this year.

The Korea Development Bank and the Korea Maritime Promotion Corporation formed a sales advisory group on April 10 and held a consultation to check the feasibility of a sale.

Through this, it was concluded that it would be appropriate to start selling the management rights of HMM within this year.

The sale will be conducted by open competitive bidding in accordance with the National Contract Law. Its aim is to select a preferred bidder through the second stage of bidding and complete a stock purchase contract within this year.

The share sold is 399 million, and the share ratio based on dilution, including permanent bonds held by Korea Development Bank and Korea Maritime Promotion Corporation, is about 38.9%.

The rest of the perpetual bonds will be converted in stages in accordance with the exercise of HMM’s redemption rights. It has established a policy to deal with convertible stocks in consultation with the acquirer in a way that minimizes the impact on the market.

The Korea Development Bank and the Korea Maritime Promotion Corporation said, “Given the importance of HMM to the national economy, we will do our best to actively respond to the rapidly changing shipping industry environment and ensure HMM’s global competitiveness by selling management rights to a capable acquirer who will lead the sustainable development of HMM.” Reporter Cho Seung-ri

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