The acquisition is expected to beconcluded early next week and comes as part of an extensive restructuring plan tosave financially troubled Hanjin, a part of the Korean Air (KAL) group.
Hanjin is reportedly hoping to raise atotal of KRW 1.9 trillion through both asset sales and taking on fresh loans tohelp restore its balance sheet back to profit.
Hanjin owns a fleet of 50 bulk carriers rangingin size between handysize bulkers and very large ore carriers. But the bigattraction of the dry bulk deal to buyers is said to be the profitable longterm freight contracts which the company holds with domestic power companiesKepco and KOGAS.
The upturn in the dry bulk market andimproved prospects for the market are understood to have helped progress a dealwith Hahn & Co.
Hahn & Co, established by formerMorgan Stanley chief investment officer Scott Hahn, has shown a strong interestin shipping and had earlier made a failed bid to buy a controlling stake inKorea Line.
KAL has said it will support Hanjinthrough its problems and is set to be an integral part of its financialrestructuring. KAL has said it will sell most of its 28% stake in S Oil but is liningup a KRW 650bn injection of fresh liquidity into Hanjin made up of a KRW 250bnin loans and the rest through the acquisition of a rights offering which willsee KAL emerge as Hanjin’s majority shareholder.
Hanjin is also lining up a KRW 300bnsyndicated loan from banks to improve its liquidity further.
