SM Line becomes a bidder to take over Hanjin Heavy
The four-year-old Asian container company, SM Line, is one of three local bidders keen to acquire Hanjin Heavy Industries and Construction, the oldest shipbuilder in South Korea (HHIC).
The state-owned Korea Development Bank (KDB), HHIC's main creditor and largest shareholder, said that three Korean consortiums have bid for the yard this week, two of which are led by local banks.
Early next year a decision on the winning offer will be made public. It is estimated that KDB's 83.45% interest in the shipbuilder, which has been under court protection for many years, is worth $550m. As well as its Busan home base, HHIC has a giant yard in the Philippines' Subic Bay.
HHIC, founded in 1937, was once one of the top 10 shipbuilders in the world. Five years ago, it requested court protection.
The parent of SM Line is Samra Midas, a conglomerate best known as a construction company. Having taken over the dry bulk firm Korea Line Corporation seven years ago, it has a diverse shipping portfolio. The defunct Samsun Logix was then taken over by Korea Line Corporation.
Maritime Business World