Stock market observers about the possibility of a hostile takeover of Hanjin Shipping
Stock market observers have begun talking about the possibility of a hostile takeover of Hanjin Shipping, South Korea’s biggest shipping company, by Israeli tycoon Sammy Ofer, following a statement issued to the exchange late yesterday. Citi Global Market, said to be linked to Ofer, has informed the exchange that it now owns 9M shares, almost 13% of Hanjin stock, following the purchase from Geveran Holdings. Geveran is controlled by Norwegian shipping magnate John Fredriksen. City Group said that along with other interests it had purchased 6M shares from Geveran for W24,750 ($25.9) per share. Observers, however, have also expressed confidence that the company’s dominant shareholders could hold their own in the face of a takeover bid. 'Friendly' shareholders including chairman Cho Soo Ho control nearly 30% of Hanjin Shipping equity, with another 17% available in the form of options on bond warrants. Citi Global, however, said the purchase is mainly for “investment” purposes. The transaction saw Hanjin’s share price rise 5% today to W24,550 ($25.6).
