Hyundai Merchant Marine Co., South Korea’s biggest shipping line, said Tuesday it will raise its stake in a Busan terminal in a move that could strengthen its competitiveness through lower cargo handling costs.
Hyundai Merchant Marine said it and PSA International, a Singapore-based terminal operator, are set to acquire 40 percent and 10 percent stakes from private equity investment firm IMM Investment, respectively.
The deal -- signed in South Korea’s southeastern port of Busan earlier in the day -- will raise the stakes in the terminal of Hyundai Merchant Marine and PSA International to 50 percent each for their co-management of the terminal.
Hyundai Merchant Marine said the deal could lower cargo handling costs, which in turn would boost its bottom line.
The news sent shares in Hyundai Merchant Marine up 4.21 percent to close at 6,440 won, outperforming the broader KOSPI‘s 0.71 percent loss.
Separately, the shipping line announced its first-quarter earnings results. Its operating losses deepened to 170.1 billion won in the January-March quarter from 131.2 billion won one year earlier, the company said in a regulatory filing.
Sales fell 14.6 percent on-year to 1.112 trillion won from 1.302 trillion won during the same period, it said.
The widened operating losses were due to excess supply, low shipping rates and high fuel costs, a company spokesman said. (Yonhap)