Hanjin Shipping has announced that it is merging with one of its subsidiaries, Keoyang Shipping. The shareholders’ meeting for approval of the merger is scheduled to take place on the May 29th.
Keoyang Shipping specialises in dry bulk, with the major source of income being the transportation of iron ore and coal for POSCO, KEPCO and their affiliated companies.
In 2007, Keoyang Shipping’s total sales recorded KRW 140.2 billion, with operating profit of KRW 24.8 billion and net profit of KRW 20 billion. Its total assets reached KRW 338.9 billion, and its liability ratio was 35%.
Hanjin Shipping says that this merger is part of its mid- to long-term plan to expand its bulk business, which is now around 20% of the company’s total sales.
Through this merger, Hanjin Shipping will be taking over a total of seventeen dry bulk vessels, including thirteen bulk ships owned by Keoyang Shipping. This will allow the company to improve the efficiency of its fleet operation as well as enhance its bulk business with relatively stable profitability.
Hanjin Shipping added that the main reason for this merger is to avoid the overlap of the two companies’ bulk businesses, and eventually to improve the efficiency of the management and bring synergy effect to the business.
Meanwhile, in order to further strengthen the company’s bulk division, Hanjin Shipping plans to expand its bulk fleet from 100 vessels to 250 by 2013.
The fleet will include sixteen dry bulk ships (ten ordered by Hanjin and six ordered by Keoyang), as well as various handy, panamax and cape size vessels to be secured in the near future.
Keoyang Shipping specialises in dry bulk, with the major source of income being the transportation of iron ore and coal for POSCO, KEPCO and their affiliated companies.
In 2007, Keoyang Shipping’s total sales recorded KRW 140.2 billion, with operating profit of KRW 24.8 billion and net profit of KRW 20 billion. Its total assets reached KRW 338.9 billion, and its liability ratio was 35%.
Hanjin Shipping says that this merger is part of its mid- to long-term plan to expand its bulk business, which is now around 20% of the company’s total sales.
Through this merger, Hanjin Shipping will be taking over a total of seventeen dry bulk vessels, including thirteen bulk ships owned by Keoyang Shipping. This will allow the company to improve the efficiency of its fleet operation as well as enhance its bulk business with relatively stable profitability.
Hanjin Shipping added that the main reason for this merger is to avoid the overlap of the two companies’ bulk businesses, and eventually to improve the efficiency of the management and bring synergy effect to the business.
Meanwhile, in order to further strengthen the company’s bulk division, Hanjin Shipping plans to expand its bulk fleet from 100 vessels to 250 by 2013.
The fleet will include sixteen dry bulk ships (ten ordered by Hanjin and six ordered by Keoyang), as well as various handy, panamax and cape size vessels to be secured in the near future.