HMM floated 6.19 million convertible preferred shares to Market Vantage Ltd., a Hong Kong-based investment firm, for 60 billion won. Market Vantage already has a stake in Hyundai Merchant Marine.
According to HMM, this move is in accordance with a memorandum of understanding signed in June.
HMM initially issued 6.81 million shares at 8,370 won per share which were worth KRW 57 billion on June 16.
“The arrival of fresh funds is noteworthy because it does not involve asset sales and the money will come in the form of investment that can reduce debt levels and improve overall financial health,” remarked an HMM official, adding that such developments can lay the foundation for a return to profit.
Hyundai Merchant Marine explained that the sold shares can be converted into ordinary shares one year after their issuance.
Debt-laden HMM is cited by Yonhap as saying that it has managed to considerably cut debt after all the self-help measures that have been implemented.