Samsung Heavy Industries Co., one of South Korea’s largest shipyard owners, is preparing to sell almost US$1 billion in stocks to beat its large debt and avoid sinking in an industry slump, reported the Korea Times.
The shares are rumoured to be selling at around $6 each, and the sale procedures are planned to begin on November 7, 2016 with stocks listed for sale by November 28, 2016; its affiliate companies such as the famous Samsung Electronics are expected to participate.
The company has been struggling with debt for a while, in August 2016 PTI reported that Samsung Heavy was aiming to combat its losses from the ailing industry with a debt restructuring plan.
The self-rescue plan included asset sales and job losses; a week after this was reported the shipping company of the same nationality, Hanjin Shipping Co., announced its court receivership due to a $1 billion debt that was unable to be eliminated with a similar plan.
Park Dae-young, Samsung Heavy Chief Executive, said: “We decided to pursue a rights issue in order to respond proactively to uncertain market conditions and secure funding for the company's operations in a stable manner.”