Korea's Hyundai Heavy Industries (HHI) and the Hyundai Group (HG) are fighting each other for control of Hyundai Merchant Marine (HMM), reports Bloomberg.
Calling it a "divided empire", Bloomberg says that Hyundai Heavy, which owns 23.8 per cent of HMM, has rejected a plan to increase the container shipping line's preferred stock sales limit.
The Hyundai Group said in a filing with the Seoul stock exchange that it would raise its stake in HMM to 22.6 per cent to thwart Hyundai Heavy's attempt to control the company.
"The action by Hyundai Heavy shows that Hyundai Heavy hasn't given up its ambition to take over Hyundai Merchant," the Hyundai Group said. "They have also blocked Hyundai Merchant's plan to invest in the future and that could eventually undermine shareholders' value."
Hyundai Heavy told Bloomberg: "We opposed the plan because it wouldn't be in the best interest of the shareholders. If the company really needs the money, they can always use the 120 million of common shares available to them."
According to the Hyundai Group, HMM planned to use the cash from the preferred stock sales to fund ship purchases. As the world's 18th biggest container shipping company, HMM has five vessels aggregating 65,000 TEU. |
