HMM to Take Control of Busan Terminal
The number one Korean national containers carrier Hyundai Merchant Marine (HMM) and Singapore-based terminal operator PSA International have secured complete ownership of the Hyundai Pusan New-Port Terminal (Pier 4) in the Port of Busan, South Korea.
The container carrier sold off its majority ownership in PSA Hyundai Pusan New-Port Terminal Co in 2016 due to liquidity trouble.
According to a report in Pulse, HMM will acquire 50 percent plus one share in PSA Hyundai Pusan New-Port Terminal through a private equity fund, tentatively named as Yuanta-HPNT that it set up with Korea Ocean Business, a state authority focused to support the maritime industry.
HMM, world's 14th largest container line in terms of vessel capacity, put up 127 billion won ($112.4 million) for 126.96 billion shares or 80 percent stake in Yuanta-HPNT PEF, according to its regulatory filing. The remaining 20 percent stake worth 50 billion is invested by Korea Ocean Business.
PSA Hyundai Pusan New-Port Terminal was established in 2010 after it was spun off from HMM. HMM and PSA International each took a 50 percent stake in the terminal after purchasing the remaining shares from Korean venture capital investment firm IMM Investment: HMM took 40 percent and PSA took 10 percent.
The terminal has been renamed the Korea Shipping Partnership Pusan Newport Terminal, and it accounted for around 1.2 million TEUs, about 30 percent of HMM's business, last year.
The Port of Busan is the largest port in South Korea, located in the city of Busan, South Korea.