.jpg)
1 hour ago
3
Article content
(Bloomberg) — South Korean shipping companies SK Shipping Co. and H-Line Shipping Co. — both owned by private equity firm Hahn & Co. — will swap tankers and contracts to create one of the world’s largest operators of liquefied natural gas carriers.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
SK Shipping will receive 16 LNG vessels and their long-term contracts from H-Line in exchange for 12 tankers, their contracts and approximately $300 million in cash, the buyout firm said in a statement on Thursday.
Article content
Article content
The deal will turn SK into what Hahn & Co. described as the world’s third-largest operator of LNG carriers, while H-Line will become a leading tanker and bulk-shipping company in the region.
Article content
Article content
The swap, part of a years-long effort to reshape Korean shipping, also comes as months of conflict in the Persian Gulf upend the energy trade and create lucrative opportunities for shipowners, charterers and traders.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
A large, consolidated fleet backed by long-term contracts can offer relatively predictable cash flows in an industry otherwise buffeted by sharp swings in freight rates. The swap will allow H-Line to benefit from “increased scale, operating efficiencies, and capital” at a time of geopolitical uncertainty, Hahn & Co. said.
Article content
Hahn & Co. created H-Line in 2014 by acquiring Hanjin Shipping Co.’s long-term dry-bulk operations. It added Hyundai Merchant Marine Co.’s long-term dry-bulk business in 2016.
Article content
Hahn & Co. then acquired about 80% of SK Shipping from SK Group in 2018 and shifted the company away from speculative spot-market operations toward vessels backed by secured, long-term contracts.
Article content
Advertisement 1
English (US)