SM Group Pulls Out of Long Beach Terminal Bid
SM Group, the South Korean owner of Korea Line, has withdrawn its bid to buy a stake in Hanjin Shipping's Long Beach terminal after struggling to raise funds for the bid according to industry sources cited by news agency Yonhap.
The two remaining bidders are consortiums, one involving Hyundai Merchant Marine and the other container shipping company MSC.
The companies have reportedly submitted a bid for a 54 percent stake in the terminal, an acquisition estimated at $342 million.
The Long Beach Container Terminal (Pier-T) has the capacity to process more than three million TEUs on and off vessels annually.
MSC is currently the second-largest shareholder in the terminal with a 46 percent stake.
In November, Hanjin agreed to sell part of its container ship business to Korea Line for 37 billion Korean won ($31.38 million). Korea Line will buy Hanjin's Pacific routes shipping business, relevant client management information, units in seven countries including the United States, China and Vietnam, as well as assets and manpower related to logistics systems, Hanjin said in a regulatory filing. Hanjin said the sale, which will be completed on January 5, 2017, is to secure funds to pay off creditors.
Hanjin applied for court receivership in late August after banks denied further financial support for the troubled shipping company.