HYUNDAI Merchant Marine Co. (HMM) is to acquire one-fifth of Hanjin Shipping's Terminals International LLC (TTI), the operator of a terminal at the US port of Long Beach.
HMM's board of directors agreed to buy a 20 per cent stake in TTI and equipment leasing firm HTEC, as well as the debt owed to its shareholders, for a combined US$15.6 million. The acquisition will make HMM the second largest shareholder in TTI, after Mediterranean Shipping Co (MSC), which owns the remaining 80 per cent.
The acquisition will enable HMM to receive the same port tariff rates as MSC and lower terminal handling costs, reported BusinessKorea. Furthermore, MSC will stand surety for TTI's loans worth $320 million and its lease worth $900 million to be paid to the US port authority for the next 11 years.
An official from HMM was quoted as saying: "We have a modest financial burden for the acquisition of the TTI stake and no responsibility for contingent liabilities. The handling volumes at the Long Beach Terminal will dramatically increase as we strengthen the Asia-US services through a strategic cooperation with 2M beginning of April."
Source: SchednetPrevious Next
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