Thursday, October 29, 2009

Hanjin Shareholders Approve Restructure

Seoul, South Korea-based ocean carrier Hanjin Shipping said Wednesday that a board of directors plan to split the firm in two has been approved by its shareholders.

The shareholder-backed plan will see the creation of two firms– Hanjin Shipping, handling shipping operations; and Hanjin Shipping Holdings, handling the remaining business interests including governance, investments, and terminal operations and logistics.

Following the restructuring, Hanjin Shipping will exercise full control over the current shipping interests while Hanjin Shipping Holdings will manage the existing subsidiaries.

The plan, first announced Sept. 16 and awaiting shareholder approval, is envisioned to simplify governance and increase competitiveness.

Shareholders will receive 16 shares of the new shipping firm and 84 shares of the holding firm for each 100 shares of the existing Hanjin Shipping Co. held.

Under the restructuring plan, the current firm will be delisted from the Korean stock exchange on Dec. 1 and the two new firms are expected to be listed by Dec. 29 of this year.