Up to $5.4 billion bidding for HMM to begin Thursday

The official bidding process for the acquisition of HMM is set to begin Thursday, paving the way for the deal that could fetch up to 7 trillion won ($5.4 billion).

The bidding process for HMM, Korea's top container shipping company, is set to begin Thursday, [HMM]

The official bidding process for the acquisition of HMM is set to begin Thursday, paving the way for the deal that could fetch up to 7 trillion won ($5.4 billion).

Korea Development Bank (KDB), the main creditor of the country's largest shipping company, will either decide the final bidder or void the bidding if it sees no viable acquirer.

Three firms are expected to participate in the race for Korea's top container shipper, which has been under a creditor-led debt restructuring scheme since 2016.

According to industry sources, LX International, Harim and Dongwon Group, which have been shortlisted as candidate buyers, are expected to participate in the bidding led by the state-run KDB, the main creditor, and the Korean Ocean Business Corporation.

The total number of shares for sale is 397.9 million, with the anticipated selling price expected to be between 5 trillion won and 7 trillion won.

Some, however, worry that the companies' bidding prices may fall short of the amount desired by KDB, which could lead to the collapse of the process.

KDB and other creditors plan to review the financial status, managerial capabilities and operational plans of the companies participating in the bidding.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]