Hanjin Shipping Co. shares surged by the daily limit of 30% in Seoul after news broke that the sale of the bankrupt container mover’s US-Asia assets was about to be finalised with a unit of Korea Line Corporation parent Samla Midas (SM) Group, reported Bloomberg.
This is despite controversy surrounding Choi Eun-young, ex-CEO of Hanjin Shipping, who's been indicted on charges of insider trading by South Korean prosecutors.
The prosecution alleges that Choi sold stock in Hanjin when she learned of the carrier's impending collapse, several days before the firm applied for a restructuring program and made its situation known to the public.
After news that the asset sale may be concluded next week, about 2.64 million Hanjin Shipping Co. shares changed hands at 2:02 pm local time on January 3, 2017, at 431 won apiece.
Another lot of 1.82 million shares traded at 2:13 pm at 481 won apiece — its biggest gain on record — according to data compiled by Bloomberg.
Tuesday’s (January 3, 2017) closing price was 370 won.
No comments have been made by either a SM Group or Hanjin Shipping Co. official confirming the news from local media.
Hanjin, once the world’s seventh-biggest container-shipping company, sought court receivership last year after creditors ended all funding support and the government decided not to intervene.
Korea Line, part of the SM Group, signed an agreement in November to buy the assets for 37 billion won ($30.7 million).
The Korea Exchange said the stock was placed on surveillance after gaining about 45% in the past five days.
Recent developments have seen Hanjin’s 54% stake in the largest terminal at the Port of Long Beach being sold to Swiss-based MSC, the world’s second largest container operator.
