HMM to regain control in Pusan New-Port Terminal

[Photo provided by Hyundai Merchant Marine Co.]

South Korea’s leading container carrier Hyundai Merchant Marine Co. (HMM) redeemed majority ownership in PSA Hyundai Pusan New-Port Terminal Co. that it sold off in 2016 due to liquidity trouble.

According to a regulatory filing, HMM will acquire 126.9 billion shares worth 126.9 billion won ($112.4 million) in a private equity fund Yuanta-HPNT PEF togehter with Korea Ocean Business Corp. (KOBC).

"In the new future, the private equity fund will acquire 100 percenst stkae of Waska's curent shares (50% of PHPNT) and then it will re-distribute the stakes to HMM and KOBC. (80%) and PSA (20%), a ompany spokesman said.

The HMM-KOBC consoritium and PSA will jointly operate the port termina with equal 50 percent basis, he added.

PSA Hyundai Pusan New-Port Terminal was established in 2010 after it was spun off from HMM. The shipping company owned 50 percent plus one stake in the port terminal in the southern port city of Busan and a special purpose company set up by Korea’s IMM Investment Corp. held the other 50 percent minus one share. HMM sold 40 percent plus one share to Port of Singapore Authority (PSA) for 80 billion won to resolve some of its immediate liquidity woes in 2016.

HMM has been burdened by high landing fees at PSA Hyundai Pusan New-Port Terminal due to contract it signed with PSA when it sold shares. The shipper expects its latest investment reduce the burden.

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