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HMM to sell assets to raise US$1.4bn to reduce debt burden
HYUNDAI Merchant Marine (HMM) plans to raise KRW1.5 trillion (US$1.42 billion) from selling various assets and by restructuring its bulk shipping operations, as part of a wider restructuring programme by the Hyundai Group to reduce their heavy debt burden.
The group is aiming to raise up to KRW3.3 trillion to improve its liquidity and has put its financial sector units (Hyundai Securities, Hyundai Asset Management and Hyundai Savings Bank) for sale together with other assets, including the luxury Banyan Tree Hotel in Seoul, according to Alphaliner.
The group would then concentrate on three core businesses - HMM, Hyundai Elevator and Hyundai Logistics - while retaining its controversial North Korean investments through Hyundai Asan. Former Hyundai Group chairman, Chung Mong-hun, committed suicide in August 2003 after he was indicted for secretly transferring millions of dollars to the North Korean government in 2000.
On its part, HMM would sell some of its container terminal assets, container equipment as well as real estate it owns in the United States, China and Singapore. It will also dispose of various financial shareholdings including a 22.4 per cent stake in Hyundai Securities, which is worth about KRW222 billion.
HMM's total liabilities as at the end of September stood at KRW8.13 trillion against total equity of only KRW0.82 trillion, as its debt to equity ratio reached 993 per cent.
The group is aiming to raise up to KRW3.3 trillion to improve its liquidity and has put its financial sector units (Hyundai Securities, Hyundai Asset Management and Hyundai Savings Bank) for sale together with other assets, including the luxury Banyan Tree Hotel in Seoul, according to Alphaliner.
The group would then concentrate on three core businesses - HMM, Hyundai Elevator and Hyundai Logistics - while retaining its controversial North Korean investments through Hyundai Asan. Former Hyundai Group chairman, Chung Mong-hun, committed suicide in August 2003 after he was indicted for secretly transferring millions of dollars to the North Korean government in 2000.
On its part, HMM would sell some of its container terminal assets, container equipment as well as real estate it owns in the United States, China and Singapore. It will also dispose of various financial shareholdings including a 22.4 per cent stake in Hyundai Securities, which is worth about KRW222 billion.
HMM's total liabilities as at the end of September stood at KRW8.13 trillion against total equity of only KRW0.82 trillion, as its debt to equity ratio reached 993 per cent.
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