Over 100 participants joined the signing ceremony hosted at the PHPNT office in Pusan, including Young-Choon Kim (Minister of Oceans & Fisheries of Korea), Kichan Nam (President Busan Port Authority), C. K. Yoo (HMM President & CEO), and Roger Tan Keh Chai (PSA Regional CEO Northeast Asia).
This sales contract includes that the private equity fund, Yuanta-HPNT, which was established by HMM and PSA’s investments of 80% and 20%, respectively, will acquire stakes of Waska Inc. which holds 50% stakes of PHPNT.
The total investment amount will be KRW 221.2 billion which consists of HMM and PSA’s investment of KRW 177 billion (including Korea Ocean Business Corporation’s investment of KRW 50 billion) and 44.2 billion, respectively. As result, HMM becomes co-owner of PSA-Hyundai Pusan New Port with PSA, each with 50% equal stakes.
With this contract, HMM also secures stable berths for 23,000 TEU mega containerships expected to be delivered in the second quarter of 2020. HMM can also optimize its profitability through reducing cargo handling costs at PHPNT. Furthermore, HMM plans to attract global liners engaged in the shipping alliance to call at Pusan port in order to increase transit cargo volume and terminal revenue.
HMM’s CEO C.K. Yoo, said, “Through the acquisition of PHPNT’s 50% stakes, HMM can strengthen its competitiveness and provide top priority to customer service at the same time. We will do our best to make PHPNT a worldwide hub port.”