By Lee Hyo-sik
Harim, the country's largest poultry breeder and animal feed maker, said Friday that it will acquire a 58 percent stake in mid-sized shipping firm Pan Ocean for 1 trillion won ($910 million). Shareholders and creditors of the shipping company agreed to a capital write-down and other restructuring programs.
In April, Harim submitted a rehabilitation plan for Pan Ocean to the Seoul Central District Court, saying it will buy the troubled shipping firm only if the latter's shareholders and creditors accept financial losses.
The plan calls for the 1.25-to-1 stock reduction, while requiring Korean Development Bank and other creditors to recoup only 82 percent of their loans extended to Pan Ocean.
For instance, a shareholder who currently has 250 Pan Ocean shares will see his stakes drop to 200 after the capital reduction.
Harim held a meeting of Pan Ocean shareholders and creditors at the court on Friday and put its rehabilitation scheme to a vote. The company has to gain consent from more than half of Pan Ocean stakeholders and two-thirds of creditors.
At the meeting, 61.6 percent of company shareholders and 87 percent of creditors approved the revival plan, giving a green light to Harim's takeover of Pan Ocean.
"We were to reconsider acquiring Pan Ocean if the rehabilitation scheme was voted down," a Harim official said. "We are glad that shareholders and creditors supported our plan, which will facilitate the acquisition process. We would like to complete it in August."
Harim was not able to seal the deal as a group of minority shareholders opposed its plan to reduce the shipbuilding firm's capital.
Pan Ocean, the former maritime logistics unit of the now-defunct STX Group, operates about 90 vessels, mostly modest-sized bulk carriers.
After the collapse of STX, Pan Ocean filed for court receivership in June 2013 and was up for sale.
Harim has been seeking to take over Pan Ocean to own a shipping business to more stably bring grains, animal feeds and other commodities into the country from the United States and other countries. Operating its own shipping line is also expected to help reduce transport costs.
Harim, the country's largest poultry breeder and animal feed maker, said Friday that it will acquire a 58 percent stake in mid-sized shipping firm Pan Ocean for 1 trillion won ($910 million). Shareholders and creditors of the shipping company agreed to a capital write-down and other restructuring programs.
In April, Harim submitted a rehabilitation plan for Pan Ocean to the Seoul Central District Court, saying it will buy the troubled shipping firm only if the latter's shareholders and creditors accept financial losses.
The plan calls for the 1.25-to-1 stock reduction, while requiring Korean Development Bank and other creditors to recoup only 82 percent of their loans extended to Pan Ocean.
For instance, a shareholder who currently has 250 Pan Ocean shares will see his stakes drop to 200 after the capital reduction.
Harim held a meeting of Pan Ocean shareholders and creditors at the court on Friday and put its rehabilitation scheme to a vote. The company has to gain consent from more than half of Pan Ocean stakeholders and two-thirds of creditors.
At the meeting, 61.6 percent of company shareholders and 87 percent of creditors approved the revival plan, giving a green light to Harim's takeover of Pan Ocean.
"We were to reconsider acquiring Pan Ocean if the rehabilitation scheme was voted down," a Harim official said. "We are glad that shareholders and creditors supported our plan, which will facilitate the acquisition process. We would like to complete it in August."
Harim was not able to seal the deal as a group of minority shareholders opposed its plan to reduce the shipbuilding firm's capital.
Pan Ocean, the former maritime logistics unit of the now-defunct STX Group, operates about 90 vessels, mostly modest-sized bulk carriers.
After the collapse of STX, Pan Ocean filed for court receivership in June 2013 and was up for sale.
Harim has been seeking to take over Pan Ocean to own a shipping business to more stably bring grains, animal feeds and other commodities into the country from the United States and other countries. Operating its own shipping line is also expected to help reduce transport costs.
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