Hanjin to Sell 49% Stake in Port

31 May 2010 (Last Updated May 31st, 2010 18:30)

A first quarter loss of KRW135bn ($110m) has forced Hanjin Shipping to sell 49% of its stake in a South Korean port. The Seoul-based container shipping line said it expects to raise KRW200bn ($177m) by selling the stake in Hanjin New Port Company, which runs facilities in Busan. T

A first quarter loss of KRW135bn ($110m) has forced Hanjin Shipping to sell 49% of its stake in a South Korean port.

The Seoul-based container shipping line said it expects to raise KRW200bn ($177m) by selling the stake in Hanjin New Port Company, which runs facilities in Busan.

The company said it will retain 51% of the port share and expects to raise KRW252bn ($204m) by selling 10.9 million new shares next month for working capital.

Hanjin’s container lines suffered industry-wide losses in 2009 due to slumping trade and falling prices.

Operating profit, or sales minus the cost of goods sold and administrative expenses, touched KRW2.5bn ($2m) as gains from bulk-shipping offset an KRW9.5bn ($8m) operating loss from hauling containers.