The board of SM Group, parent of Korea Line Corp, has rejected its move to buy the Asia – US business of bankrupt container line Hanjin Shipping.
Dry bulk shipowner Korea Line won a bid to acquire Hanjin’s Asia – US business for $31.4m and was planning to launch two transpacific services in April.
However, SM Group’s board turned down the plan to acquire assets at a stakeholder meeting on the grounds that Korea Line lacked experience in container shipping and an industry wide slump in the sector could impact cashflow, according to a report by Yonhap News Agency.
SM Group could still acquire the Asia – US business but as a separate entity to Korea Line.
“There is a clause stipulating that a separate corporate body can still acquire the asset when the proposal is turned down at a stakeholders meeting,” a group official was quoted as saying, adding that the company will proceed with related procedures to buy the route.