Hanjin Shipping shares up sharply over asset sale

By Park Sae-jin Posted : October 13, 2016, 13:51 Updated : October 13, 2016, 13:51

[Yonhap News Photo]


Hanjin Shipping shares rose sharply Thursday on news that court officials kickstarted the process of selling assets from South Korea's largest container carrier which has been put under court receivership to avoid bankruptcy.

At 1:30 pm (0430 GMT), Hanjin's share price jumped 19.07 percent from the previous session following reports that a court-issued public notice of sale would be issued soon. The court's move came as a cargo crisis caused by Hanjin's court receivership in late August showed signs of easing.

Before Hanjin was placed under court receivership, the shipper was the world's seventh-largest container carrier. Market watchers believe potential buyers will be interested in Hanjin's assets including containers, overseas subsidiaries, and terminals.

With its global service crumbling, Hanjin will be kicked out of a global shipping alliance. The shipper has already transferred some core assets to its parent Hanjin Group but there are valuable assets still left intact such as ships and sales networks.

Financial regulators once suggested Hyundai Merchant Marine, controlled by creditors, could acquire healthy assets from Hanjin to maintain the competitiveness of South Korea's embattled shipping industry.

Aju News Lim Chang-won = cwlim34@ajunews.com
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