Press Reports: Hanjin Shipping sale possible

Various media reports have speculated the sale of South Korean liner carrier Hanjin Shipping, viewing COSCO and Maersk Line as possible buyers.

   Speculation about the possible sale of Hanjin Shipping has heated up.
   On Wednesday, Bloomberg reported the Seoul Central District Court where Hanjin filed for receivership “is considering a sale process for the entire container line.”
   The investment bank Jefferies on Tuesday speculated that Maersk might acquire assets of not only Hanjin, but fellow South Korean carrier Hyundai Merchant Marine (HMM).
   Reuters also said Wednesday a sale is one of “many options” being considered by the court, and in another story, Reuters cited a report by the Chinese online finance magazine Caixin that COSCO may buy Hanjin.  However, Caixin said COSCO Chairman Xu Lirong stated his company had no such plans.
   Jefferies analyst David Kersten told Bloomberg in an interview Tuesday that Maersk will participate in consolidation in the liner industry and, “the most likely scenario is that Maersk would take over the assets of Hyundai and Hanjin.” 
   Last week, Soren Skou, the chief executive officer of Maersk Line and its parent A.P. Møller – Maersk, told investment analysts that it wants to grow its market share in the container shipping industry and that it will consider acquisitions if the right opportunities develop.
   “We want to make sure we maintain our leading position in the industry,” Skou explained.
   Also last week, A.P. Møller – Maersk A.S revealed changes in senior management positions and that the conglomerate will split into two independent divisions, one focusing on transport and logistics, and the other focusing on energy.
   In regards to Kersten’s comments about Hanjin and HMM, a Maersk spokesman said Tuesday the company does not comment on rumors and speculations.
   HMM announced in July that it had entered into a memorandum of understanding to join the 2M Alliance of Maersk and Mediterranean Shipping Co., and last month, Korea’s Financial Services Commission directed HMM to form a task force to review a possible acquisition of Hanjin’s health assets.
   Korea’s Yonhap News Agency reported Sunday that HMM has begun work to acquire key assets of Hanjin Shipping.
   On Tuesday, Hanjin Shipping’s shares rose 180 won (U.S. $0.16), then rose an additional 115 won on Wednesday to close at 1,250 won, while HMM’s shares rose Tuesday 70 won to close at 8,770 won, then fell 260 won on Wednesday on the Korea Stock Exchange.