April 20, 2024
Industrials
Korea Line shareholders vote against Hanjin route acquisition
[THE INVESTOR] Korea Line reported on Jan. 3 that its extraordinary shareholders meeting voted against taking over a major business of Hanjin Shipping.
The SM Group affiliate has been eyeing the US-Asia route of the now-bankrupt shipping giant, but its major stakeholders turned down the proposal saying that the bulk carrier specialist has no experience in container management and the acquisition might pose risks to the company’s liquidity.
SM Group will change the principal of the contract to its newly established merchant shipping subsidiary instead.
Korea Line has agreed to take over core assets of Hanjin Shipping for 37 billion won (US$30.66 million) in November 2016.
By Hwang You-mee (glamazon@heraldcorp.com)
The SM Group affiliate has been eyeing the US-Asia route of the now-bankrupt shipping giant, but its major stakeholders turned down the proposal saying that the bulk carrier specialist has no experience in container management and the acquisition might pose risks to the company’s liquidity.
SM Group will change the principal of the contract to its newly established merchant shipping subsidiary instead.
Korea Line has agreed to take over core assets of Hanjin Shipping for 37 billion won (US$30.66 million) in November 2016.
By Hwang You-mee (glamazon@heraldcorp.com)
