15.2 C
Hamburg
Sunday, June 1, 2025
Home News Update: KDB to exchange 37% of HMM convertible bonds; state to sell...

Update: KDB to exchange 37% of HMM convertible bonds; state to sell nearly 58% stake

Korea Development Bank (KDB) has announced that as part of its divestment of HMM’s shares, it will sell all its existing shares, plus 37% of its convertible bonds.

In a notice posted on 20 July on Korea Online E-procurement System, which manages the South Korean government’s procurement processes, including bidding and contract-signing, KDB said that it will sell its 20.69% stake, comprising 101.19 million shares. KDB will also exchange KRW1 trillion (US$782 million) of the KRW2.7 trillion (US$2.1 billion) of its convertible bonds into shares to be sold along with the original 20.69% stake.

Korea Ocean Business Corporation will also sell all its 97.59 million HMM shares, amounting to a 19.96% stake. This means that after the convertible bonds are exchanged for shares, there will be 398.78 million HMM shares to be sold by KDB and KOBC, amounting to a 57.88% stake.

KDB said that it will exchange the first set of convertible bonds on 2 October, when the state policy lender can exercise the call option on the bonds.

If convertible bonds and bonds with warrants held by KDB and KOBC are converted into shares, the number of outstanding shares of HMM will increase to 689.03 million from 489.03 million.

KDB’s ownership will rise to 29.2%, amounting to 211.9 million shares and KOBC’s stake would go up to 28.68%. The market expects the sale price of HMM to be around KRW5 trillion (US$3.9 billion).

South Korean media reports suggested that KDB will exchange its remaining convertible bonds, amounting to a 14% stake, after most of the state’s interest in HMM is sold. The National Pension Service and Korea Credit Guarantee Fund, both government organisations, hold another 12% of HMM’s shares, meaning that the state could remain a substantial shareholder.

Woo Oh-hyun, chairman of Samra Midas group, parent of HMM’s compatriot competitor SM Line, has made known his interest in acquiring HMM, but local media reports claim that the government is more inclined towards a more established conglomerate that could run HMM stably.


Martina Li
Asia Correspondent





Latest Posts

The Indian Ocean Rivalry

The Indian Ocean has emerged as a strategic theater of competition between two Asian giants: India and China. India’s recent developments indicate a rapid expansion...

Statkraft advances plans for green hydrogen scheme at Hunterston

Europe’s largest generator of renewable energy has proposed the development of a green hydrogen facility at Hunterston, the former coal terminal in Ayrshire. Clydeport –...

Port of Bilbao wraps up busiest month for cruise traffic

May has marked a record month for cruise activity at the Port of Bilbao’s terminal in Getxo, with 18 cruise ship calls bringing over...

Tripoli port shutdown sparks maritime crisis in Libya

Libya’s shipping sector is teetering on the edge of collapse as fresh waves of political violence erupt in Tripoli, crippling key port operations and...

KlaipÄ—da port embarks on green hydrogen initiative

KlaipÄ—da Port launched its green hydrogen initiative, positioning itself as the first in Lithuania and the broader Baltic region to produce and supply green...
error: Content is protected !!