Hyundai liner unit plans rights issue

Hyundai liner unit plans rights issue    South Korean liner carrier Hyundai Merchant Marine is reportedly planning a rights issue to raise about $343 million as parent company Hyundai Group makes a bid for a controlling stake in Hyundai Engineering & Construction Co. (Hyundai E&C).
   International news outlets reported last week from Seoul that the Hyundai Group — which includes Hyundai Securities Co. and Hyundai Elevator Co. along with the shipping line — was interested in a 34.8 percent stake in Hyundai Engineering & Construction Co., which has been put up for sale by the companies creditors, according to Dow Jones Newswires.
   The shipping-focused Hyundai Group faces competition from Hyundai Motor Group, which also reportedly plans a bid for the engineering and construction company. Hyundai E&C creditors are due to decide on which bid to accept this week.
   Hyundai Merchant Marine outlined its planned rights issue in a filing with the Korea Exchange.
   'It plans to issue 10.2 million new shares to existing shareholders at 38,900 Korean won per share ($33.67), representing a 5.2 percent discount to Thursday’s closing price of 41,050 Korean won ($35.53),' Dow Jones reported. 'It also said in a separate filing that it will raise 200 billion Korean won ($173 million) by selling one share short of 50 percent stake in a unit as well as recover about 377.8 billion Korean won ($327 million) in funds that were previously managed by a third party on its behalf.'