Hyundai Merchant Marine expects its liquidity crunch to ease in the second half of the year, after selling its stake in Hyundai Securities at possibly triple the price of the brokerage’s current equity value.

“We expect some breathing room in the second half once the sale is completed,” said Choi Young-man, a spokesman for the cash-strapped shipping company. 


KB Financial Group, the preferred bidder for Hyundai Merchant Marine’s stake in the brokerage unit, has reportedly offered more than 1 trillion won ($870 million) for the deal.

That is about three times the value of Hyundai Securities stocks’ closing price of 6,870 won on Thursday. On Friday, the share prices ended 3.35 percent lower, closing at 6,640 won.

EY Han Young, the accounting firm managing the deal, could not be reached for comment.

Hyundai Merchant Marine, the nation’s second-largest shipping company, is planning sell off a 22.43 percent stake in Hyundai Securities to improve its finances. Another 0.13 percent stake held by other shareholders is also up for sale.

On March 29, state-run Korea Development Bank and other Hyundai Merchant Marine creditors decided to grant the firm a three-month maturity extension on its 1.2 trillion-won debt.

By Kim Yoon-mi
(yoonmi@heraldcorp.com)