Hanjin shareholders approve company split
Hanjin Shipping said Wednesday its shareholders have agreed to a plan to split the company into two — an operating company responsible for shipping activities, and a holding company responsible for all other businesses, including terminal operations and logistics, investment and governance.
The Korean carrier first announced the move on Sept. 16, subject to approval by shareholders. The company held a meeting Tuesday and said its shareholders have backed the plan.
'The transformation into a holding company will allow its subsidiaries to focus on their core businesses through an independent/optimized strategy and distribution of their business resources,' said Kim Young Min, president and chief executive officer. 'Each and every one of us at Hanjin Shipping will certainly try our best to bring positive changes and growth for the company.'
As part of the unwinding of Hanjin, the company will be delisted from the Korea stock exchange on Dec. 1 and relisted as two separate companies on Dec. 29.
Hanjin's liner division lost $342 million in the first half of 2009, a majority of the $400 million in operating losses the company absorbed in the period.