Hyundai Merchant Marine Co., South Korea's top shipping firm, said Monday that it signed a memorandum of understanding with a state-run shipbuilding financing firm to sell part of its fleet to receive fresh funding.
Under the deal, Hyundai Merchant will sell 10 container ships at market value of 150 billion won ($131 million) to Korea Shipping Co., versus their book value of 850 billion won. The shortfall will be financed with sales of bonds and stocks to the financing firm.
A container ship (Yonhap)
The measure will help the shipping firm jack up its financial status, Hyundai Merchant said.
Korea Shipping will buy some 100 billion won worth of stocks to be sold by Hyundai Merchant and 600 billion won worth of bonds convertible into the shipper's stocks, according to Hyundai Merchant.
The container ships may be leased by Hyundai Merchant, it added.
Separately, Hyundai Merchant will place orders for five container vessels and two or three oil tankers later this year with the state-backed financing program. (Yonhap)
