Hyundai Merchant Marine Possible Take-over Target
Information has surfaced that investors from Britain and Scandinavian countries are aggressively buying shares of Hyundai Merchant Marine (HMM).
This means Hyundai Merchant may face a hostile takeover from management off foreign private equity funds seeking management right of the Korean shipping firm.
Geveran Trading, an investment fund based in the Republic of Cyprus, an international tax-haven, holds a 13.57 percent stake in the Korean company, according to the Financial Supervisory Service (FSS).
Geveran Trading is the second largest shareholder of Hyundai Merchant Marine, following the majority shareholder, Hyundai Elevator, that holds a 17.76 percent stake in the affiliate and is seen as the family controlled defacto holding company that controls HMM. Ironically, over the last couple years Hyundai Elevator has fought off take-over by members within the Chung family.
HMM was once part of the Hyundai Group. With the death of Hyundai founder Chung Ju Yung in 2001, the group split into a number of entities--each controlled by a family member. In 2003, the founder's son who controlled HMM committed suicide while under attack from government investigators over bribery charges. .
According to Korea Times, Hyundai Merchant Marine is closely monitoring the moves of the fund from Britain and Nordic countries as part of its efforts to block a possible feud, such as the one between SK Corp. and Sovereign Asset Management, a fund from British investors.
It was reported that the combined stake of HyundaiÂ’s friendly powers surpasses the 40 percent mark.
Among the friendly powers are Hyundai Engineering & Construction which holds an 8.69 percent stake.
This means Hyundai Merchant may face a hostile takeover from management off foreign private equity funds seeking management right of the Korean shipping firm.
Geveran Trading, an investment fund based in the Republic of Cyprus, an international tax-haven, holds a 13.57 percent stake in the Korean company, according to the Financial Supervisory Service (FSS).
Geveran Trading is the second largest shareholder of Hyundai Merchant Marine, following the majority shareholder, Hyundai Elevator, that holds a 17.76 percent stake in the affiliate and is seen as the family controlled defacto holding company that controls HMM. Ironically, over the last couple years Hyundai Elevator has fought off take-over by members within the Chung family.
HMM was once part of the Hyundai Group. With the death of Hyundai founder Chung Ju Yung in 2001, the group split into a number of entities--each controlled by a family member. In 2003, the founder's son who controlled HMM committed suicide while under attack from government investigators over bribery charges. .
According to Korea Times, Hyundai Merchant Marine is closely monitoring the moves of the fund from Britain and Nordic countries as part of its efforts to block a possible feud, such as the one between SK Corp. and Sovereign Asset Management, a fund from British investors.
It was reported that the combined stake of HyundaiÂ’s friendly powers surpasses the 40 percent mark.
Among the friendly powers are Hyundai Engineering & Construction which holds an 8.69 percent stake.
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