In early trading on the 23rd, Heung-A Shipping jumped 21%, showing strength. Buying appears to be pouring in after news that Sinokor Merchant Marine, Heung-A Shipping's largest shareholder, will sell half of its equity in the tanker business to MSC, the world's No. 1 container shipping company.
As of 10:01 a.m. that day in the Korea Exchange, Heung-A Shipping was trading at 3,690 won, up 665 won (21.78%) from the previous session.
According to foreign media, regulators in Greece and Cyprus on the 21st announced a merger filing stating that SAS LUX, a subsidiary of the MSC Group, will acquire 50% equity of Janggeum Maritime, the tanker affiliate of the Sinokor Merchant Marine group. The remaining 50% equity will be held by the Sinokor Merchant Marine owner family, leading to joint management of the company.
Sinokor Merchant Marine originated from Janggeum Youhan Gongsa (Sinokor), a joint venture established by Korean and Chinese shipping companies, and Chairman Jeong Tae-sun leads the group. Janggeum Maritime was founded in 2008.
Janggeum Maritime has drawn attention in the very large crude carrier (VLCC) market over the past one to two years with aggressive ship purchases. This year alone, it additionally bought more than 30 used VLCCs, each priced at $60 million to $70 million (about 90 billion to 100 billion won).
Sinokor Merchant Marine recently launched a business of leasing tankers as temporary offshore storage facilities to global oil companies after crude could not pass through the Strait of Hormuz due to the Iran situation. Sinokor Merchant Marine is known to receive about $500,000 per day as VLCC charter rates (about 750 million won).