Hyundai Mulls $500m Bulk Shipping Sale

Hyundai Merchant Marine is in talks to sell its bulk shipping business to private equity firm Hahne & Company’s special purpose vehicle for almost US$500 million, according to Reuters.

Hyundai Merchant Marine had recently made a move to boost its liquidity by selling convertible bonds at a total price of US$200 million.

According to the Financial Times, a failed asset sale recently led to a plunge in shares for Hyundai, with sales dropping by 17%, which is the lowest in more than 12 years for the carrier.

Its standing in the market place is expected to improve after the South Korean government made the original case for the shipping line to merge with Hanjin Shipping.

The pair has since reached difficulties with completing its merger after it was reported that its high debt levels made it hard to access a US$1.2 billion shipping fund.

The South Korean government originally set up the fund to help ship owners buy and sell vessels with less financial risk, as well as help ship-owners guarantee orders for vessels.

The dry bulk market is experiencing significant turbulence at present, with weakening demand from China causing ripples throughout the industry.

The situation at hand has led bulk shipping lines to offload vessels in an attempt to avoid going under, according to the Wall Street Journal.