Private equity fund (PEF) manager Hahn & Company will partitioning-sell the very large crude carrier (VLCC) division of its portfolio corporations SK Shipping for about 1 trillion won.
On the 11th, according to the investment banking (IB) industry, SK Shipping signed a contract that day to sell 10 VLCCs and the related transport business rights to Pan Ocean, a Harim Group shipping company. The total sale price is 973.7 billion won. The two sides' transaction is scheduled to be completed on Apr. 11 next year.
SK Shipping plans to use the funds secured from this transaction as a new growth engine. Pan Ocean said the purpose of the acquisition is "to bring in vessels with long-term cargo transport contracts secured with key shippers, strengthen capabilities in the liquid cargo (Wet Bulk) institutional sector, and secure a revenue base."
Hahn & Company acquired management control of SK Shipping in 2018 by investing about 1.5 trillion won. It is currently the largest shareholder, holding about 80% equity in the company. Operating profit, which was 73.3 billion won at the time of the acquisition, rose to 395.7 billion won as of 2024. Over the same period, earnings before interest, taxes, depreciation and amortization (EBITDA) also increased from 231.7 billion won to 640.9 billion won.