HMM reduces ownership stake of affiliates

As a result of a 7-to-1 share reduction for Hyundai Elevator, Hyundai Global and Hyundai Group Chairman Hyun Jeon-Eun, the Korea Development Bank will become the largest shareholder of struggling South Korean ocean carrier Hyundai Merchant Marine.    Ocean carrier Hyundai Merchant Marine said its board of directors met Friday and decided the ownership stakes held by affiliated companies — Hyundai Elevator, Hyundai Global as well as Hyundai Group Chairman Hyun Jeong-Eun — will be reduced by a 7-to-1 ratio.
   As a result, the combined ownership of those affiliates will drop to 3.65 percent, and the Korea Development Bank will become the largest shareholder of the struggling South Korean shipping company.
   HMM said the reduction in ownership is part of its ongoing restructuring plan, which has also involved sale of assets including HMM’s ownership in various companies in the Hyundai chaebol such as Hyundai Asan, Hyundai L&R and Hyundai Securities. The company has also been negotiating debt for equity swaps with some creditors and is seeking to renegotiate ship charters.
   “Today’s announcement regarding capital reduction is also part of HMM’s business restructuring process in order to prepare the planned debt-equity swap with creditors,” the company said.
   Hyundai added that it expects “operation of HMM will be stabilized under the systematic management and support by KDB should it become the largest shareholder of the company.”