Korea Development Bank (KDB)

SM Line expected to grow HMM investment when Seoul sells its share

Speculation about a possible union of South Korea’s two ocean-going liner operators has grown after SM Merchant Marine (also known as SM Line) extended its stake in HMM, and could increase its share further this year.
On 29 December, SM Line, which the Samra Midas (SM) group formed in 2016 after acquiring the remaining operations of bankrupt Hanjin Shipping, acquired an additional 613,438 shares in HMM for $14m, bringing its holding …

The post SM Line expected to grow HMM investment when Seoul...

https://theloadstar.com/sm-line-expected-to-grow-hmm-investment-when-seoul-sells-its-share/

South Korean government’s HMM stake sale to be outlined in 2022 first quarter

The South Korean government is discussing the offloading of the state’s shares in HMM with the Financial Supervisory Service, Korea Development Bank (KDB) and Korea Ocean Business Corporation (KOBC).

The government’s stake in HMM is represented by KDB and KOBC, which have a total holding of over 40%. KDB chairman Lee Dong-gull had said in September that the bank will eventually divest its stake in HMM.

A plan for the disposal of the state’s interest is expected to be produced by the end of Q1...

https://container-news.com/south-korean-governments-hmm-stake-sale-to-be-outlined-in-2022-first-quarter/

KDB holding on to more than half of HMM’s reserves

It turns out that 67% of HMM’s surplus US$4 billion funds have been deposited in low-interest funds managed by its largest shareholder Korea Development Bank (KDB).

This was revealed during a National Assembly session on 15 October by South Korean lawmaker, Kang Min-guk, who accused the state-backed policy lender of diverting HMM’s surplus funds to financial products to boost the bank’s income.

Kang, who is from the main opposition People Power Party, said he had studied HMM’s financial...

https://container-news.com/kdb-holding-on-to-more-than-half-of-hmms-reserves/

SM Line shoots down of acquiring HMM

South Korean liner operator SM Line has refuted market talk that it could try to acquire the Korea Development Bank’s stake in its larger compatriot rival HMM.

Speculation arose after Samra Midas (SM) group boss Woo Oh-hyun, who expressed ambitions of building up the shipping business ahead of SM Line’s planned initial public offering (IPO), decided against bidding for SsangYong Motor.

On 30 September, the Korea Exchange approved SM Line’s application for an IPO, further fueling market talk that...

https://container-news.com/sm-line-shoots-down-of-acquiring-hmm/

HMM must improve salary system and bank will eventually release control, said KDB chairman

Korea Development Bank chairman, Lee Dong-gull has called on HMM to improve its salary system and disclosed that the state policy lender will inevitably dispose of its controlling stake in the South Korean flagship liner operator.

Speaking at a press conference on 14 September to mark his fourth anniversary at the bank’s helm, Lee alluded to the recent dispute between HMM’s management and labour unions. HMM’s seafaring and office staff threatened to strike after meagre increments were given...

https://container-news.com/hmm-must-improve-salary-system-and-bank-will-eventually-release-control-said-kdb-chairman/

Korea Development Bank doubles its stake in HMM

Korea Development Bank (KDB), which is already the largest shareholder of HMM, will double its stake in South Korea’s flagship liner operator by changing KRW300 billion (US$265.3 million) of convertible bonds into shares.

The bank announced its decision on 29 June and the conversion will raise KDB’s stake from around 12% to nearly 25%. The South Korean state-backed policy bank became HMM’s shareholder after the liner operator underwent a debt restructuring plan in 2016.

Besides KDB’s stake, the...

https://container-news.com/korea-development-bank-doubles-its-stake-in-hmm/

HMM keeps on struggling with losses – KDB in a dilemma

As Hyundai Merchant Marine Co. (HMM) has been struggling with losses for 15 quarters in a row, creditors, including Korea Development Bank (KDB), are paying keen attention to the firm’s Q1 earnings results to be announced in the middle of this month. The ailing shipping company is expected to post a net loss again and if its loss reaches 200 billion won (US$171.38 million) as it did in the previous quarter, it needs an additional financial support as its capital impairment ratio will surge to...

https://container-news.com/hmm-struggling-losses-kdb-dilemma/

Hyundai proceeds with Daewoo’s acquisition

South Korea’s shipbuilding group Hyundai Heavy Industries (HHI) has signed a formal deal to proceed with the acquisition of its smaller rival, Daewoo Shipbuilding & Marine Engineering (DSME).

The deal was signed on Friday with Korean state lender Korea Development Bank (KDB) and follows a conditional agreement the two parties reached in January.

The parties agreed that KDB, which holds a 55.7 percent stake in DSME with an estimated worth of KRW2.16 trillion (USD1.94 billion) will sell its stake.

KD...

https://container-news.com/hyundai-proceeds-daewoo-acquisition/

KDB to entirely reform HMM

Korea Development Bank (KDB) has vowed to carry out intense reform of Hyundai Merchant Marine (HMM) to normalize the ailing shipping firm’s management. KDB is HMM’s largest shareholder with a 13.13 percent stake.

The decision came after a due diligence submitted by Samil PricewaterhouseCoopers, which claimed HMM could be “capital impaired next year and the bailout requires at least 6 trillion won ($5.32 billion) by 2022.”

The due diligence also includes HMM’s debt, currently estimated at 2.54...

http://container-news.com/kdb-entirely-reform-hmm/

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