STX Pan Ocean to sell stake in Korea Express

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Dec 2008

STX Pan Ocean Co., South Korea's leading bulk-shipping line, said Tuesday that it plans to sell its whole stake in Korea Express Co. for 210 billion won (US$164 million) to boost its cash holdings amid an industry slump. In a regulatory filing, STX Pan Ocean said it would sell 2.36 million shares in the nation's biggest logistics company for 89,205 won apiece. Korea Express, taken over by Kumho Asiana Group (KSE:020560), will buy back the 5.9 per cent stake.
The cash from the sale would help improve the company's finances, STX Pan Ocean said.
The shipping line's third-quarter profit fell 15 per cent on-year to 107 billion won on falling shipping rates and reduced demand.
A global economic downturn is expected to further shrink demand for bulk carriers to ship coal, iron ore and other commodities.
Korea Express is buying back the shares as STX Pan Ocean is opposed to the logistics company's takeover of Kumho Rent Car.

Source: Yonhap