Korean government to speed up HMM sale

[Photo by MK DB]

The sale of South Korea’s largest container shipping line HMM Co., which has been stalled over naming a preferred bidder, is expected to speed up, with the active role of the government.

While the sellers are hoping to come up with a decision this week, some insiders say that it could be affected by a potential change in stance of Harim Holdings Corp., one of the contenders seeking to buy HMM, as the Korea Development Bank (KDB), the lead seller, has rejected Harim’s controversial request for a three-year moratorium on the conversion of perpetual bonds into shares.

“The vice ministers of ministries related to the HMM sale will gather for a meeting to deal with the matter,” said a government official on Monday. “The process of naming a preferred bidder may be accelerated.”

An official from the selling party said that it will try its best to finalize the deal this week, noting that “it is also important to complete the sale quickly in view of industrial competitiveness, among others.”

The official dismissed the possibility of the bid being canceled.

The consortium led by Harim Holdings had stirred up controversy as its request for a three-year delay in the conversion of perpetual bonds into shares faced a strong backlash from another candidate Dongwon Group, which threatened legal action if the selling party accepted the request.

KDB, meanwhile, made it clear that it had no intention of taking the matter into the sale negotiations, saying, “It was only a proposal from Harim Group, and we have never reviewed it positively.”