Hanjin sells 40% of terminals business to Macquarie for $870 million
Australia’s Macquarie Bank has finally got a foothold in the terminal handling business after agreeing to purchase 40 percent of Hanjin Shipping’s terminal assets in Taiwan, Japan and the United States for about $870 million.
The terminals industry is hot with numerous takeovers and share sell-offs, most notably Hutchison Port Holdings’ 20 percent sale to rival PSA International, helping to inflate market prices. Earlier this year Macquarie was involved in failed last-minute attempts to buy Associated British Ports Holdings and Patrick Corp.
Under terms of the deal with Hanjin, Macquarie Bank offshoot Macquarie Korea Opportunities Fund will gain interest in the Korean company’s terminal operations in the ports of Kaohsiung, Osaka, Tokyo, Long Beach, Oakland and Seattle.
Hanjin said that it will retain management control over the terminals, although it will make “certain material decisions” with its new partner. All senior management at Hanjin Terminals will remain in place, Hanjin said in a statement.
“This partnership is a very positive development for Hanjin. It will provide us an opportunity to increase our market share of marine facilities operations while complementing our global expertise in the shipping and port facility management sectors,” said Hanjin President Jung-Won Park.
“This strategic move will combine Hanjin Shipping’s overseas terminal businesses into a competitive standalone operating company. This will enable the company to actively pursue and structure operations to optimize terminal capacity and efficiency.
“The transaction will support Hanjin Shipping’s business strategy to realize efficiencies in our terminal operations. The transaction will also better reflect the true value of our terminal business,” Park said.
“The opportunity to partner with Hanjin Shipping, one of Korea’s leading business groups, in the key target asset class of container terminals, will add significant value to MKOF’s growing infrastructure investment portfolio,” said David Russell, managing director of Macquarie Korea Opportunities Fund.
“Hanjin Terminals is strategically positioned along one of the world’s fastest growing trade routes, and is well placed to capitalize on increasing demand for capacity constrained container terminals,” Russell said.