'Terminal heavyweight' Janggeum Maritime secures 7.34% stake in Hanjin—what’s behind the move? [fn Market Watch]

[Financial News] Janggeum Maritime has raised its stake in Hanjin Co., Ltd., the logistics affiliate of Hanjin Group, to at least 7%. Although it has stated that the purpose of its holdings is “simple investment,” the move is seen as securing a meaningful stake. More than 20 years ago, Janggeum Maritime and Hanjin Co. jointly established a container terminal at Pyeongtaek Port. Janggeum Maritime is now the terminal’s second-largest shareholder and its largest customer.
According to investment banking (IB) industry sources and the Financial Supervisory Service’s electronic disclosure system on the 11th, Janggeum Maritime disclosed the previous day that it held 1,139,542 Hanjin shares (7.34%).
As of September 23, Janggeum Maritime held a 4.92% stake in Hanjin, but after making additional purchases, it raised its stake to 5.58% on October 2. After its stake exceeded 5%, it disclosed its holdings for the first time on the 6th of the same month. In just over a month, it increased its stake by a further 1.76 percentage points.
Janggeum Maritime is Hanjin’s third-largest shareholder, behind its largest shareholder, Hanjin KAL Corporation (29.64%), and a fund (9.43%) managed by Golden Oak Investment (formerly HYK Partners). The purchase price was in the range of 15,675 to 17,098 won per share.
Hanjin Co., Ltd.’s largest shareholder is Hanjin KAL Corporation, the holding company of Hanjin Group, which owns a 29.64% stake (4,600,412 shares). Including stakes held by related parties, the total is about 33.08%. The second-largest shareholder is private equity fund (PEF) manager HYK Partners, which holds a 9.43% stake (1,462,667 shares) through HYK No. 1 Private Equity Partnership. HYK Partners acquired the Hanjin Co., Ltd. shares held by Kyungbang in 2020, at the height of the management-control dispute over Hanjin KAL Corporation.
Janggeum Maritime is the second-largest shareholder and largest customer of Hanjin Pyeongtaek Container Terminal, with a 16.5% stake (660,000 shares). Of the terminal’s revenue of 36.19333 billion won last year, 12.66211 billion won, or 35.0%, came from Janggeum Maritime.
the group’s key affiliate, Janggeum Maritime, is pursuing joint management with Switzerland-based Mediterranean Shipping Company (MSC), the world’s largest container shipping line. The deal centers on MSC affiliate SAS acquiring a 50% stake in Janggeum Maritime and exercising joint management rights. The two companies will jointly operate the company going forward.
Janggeum Maritime, led by Vice Chairman Jeong Ga-hyeon, son of Janggeum Maritime Chairman Jeong Tae-sun, is a key affiliate responsible for Janggeum Maritime Group’s tanker business. It has rapidly expanded its presence in the VLCC market through aggressive vessel purchases recently.
Since December last year, Janggeum Maritime has secured more than 60 VLCCs in a short period, investing over $3.3 billion. Taking into account its vessels currently owned or chartered as well as newbuilds on order, industry estimates that Janggeum Maritime accounts for one in every four VLCCs worldwide. Some analyses estimate that it operates about 40% of the world’s operational VLCC fleet.
A senior IB industry official said, “Chairman Jeong Tae-sun of Janggeum Maritime has shown a particularly close relationship with Hanjin Group, going so far as to attend one of its commemorative events last year,” adding, “Given that Janggeum Maritime Group also holds at least a 50.35% stake in Busan Port Terminal Co., Ltd., he appears to be very interested in Hanjin Pyeongtaek Container Terminal.”
[email protected] Kang Gu-gwi Reporter