More Bonds
Hyundai Heavy Industries (HHI) has decided to secure liquidity. During the board meeting on June 10, the company decided to issue a total of US$220 million (244.2 billion won) of exchangeable bonds (EB) into 23.42 million shares of Hyundai Merchant Marine.
The bonds mature in five years and have no interest payments. The organizers will be foreign stock firms, including Bank of America, Merrill Lynch, and HSBC. They will be issued in overseas financial markets such as Europe and Asia, and will be listed in the Stock Exchange of Singapore (SES).
An official from HHI said, “We have pushed ahead with various measures in a bid to improve the financial structure and management efficiency. The issuance of EB is also part of the measures.”
Early this year, HHI opened the book for voluntary retirement to reduce 1,500 employees, which accounted for 5.3 percent of total workforce. Last year, three shipbuilding companies of the group, including Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard, reduced 30 percent of their directors.
HHI is also selling its assets. Last year the company sold a total of 828 billion won (US$745.95 million), including a 7.63 percent share of KCC, a 1 percent share of POSCO, and a 4.69 percent share of KEPCO E&C. Last year, HHI sold an 11 percent share of New Korea Tourism, which runs golf club New Korea CC to Hanwha Group Chairman Kim Seung-youn and Kolon Chairman Lee Woong-yeul, at the price of 15 billion won (US$13.51 million).