Stake Sale Aimed at Securing Liquidity

HMM is seeking to attract a new investor in Total Terminal International Algeciras (TTIA), a container terminal in Algeciras, Spain.

HMM owns 50 percent minus one share of TTIA with the remaining 50 percent plus 1 share held by HPA, a special purpose company under the control of HMM. The company has put up for sale its own stake, which is estimated at worth 59 billion won. The company did not disclose the buyer.

"We will secure liquidity through the stake sale and set up a joint venture with the strategic business partner to earn stable income from the operation of the terminal," HMM explained.

HMM said the stake sale will be valid only when preconditions are met. In order for the transaction to be completed, it is necessary to obtain approval from the EU, Spain, and Korea, the board of directors of each company, and the Port of Algeciras Bay Authority (APBA). A refinancing contract with financial institutions is also required. If these prerequisites are not met, the equity sale contract will be scratched off.

HMM (known as Hyundai Merchant Marine at the time) acquired a 100 percent stake in TTIA, which was one of Hanjin Shipping's blue-chip assets, in 2017. The Algeciras terminal has a total area of 357,750 square meters and can handle 1.86 million TEUs (one 20-foot-long container) per year, and is a modern terminal that can be accessed by mega container ships of 10,000 TEUs or more.

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