HMM majority stake buy to benefit Harim: Drewry

State-owned agencies Korea Development Bank and Korea Ocean Business Corporation (KOBC) announced Harim Holdings (Harim), in partnership with private equity firm JKL Partners, as their preferred bidder to buy the authorities’ combined stake in South Korean container shipping company HMM.
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A quick calculation suggests that the total market value of the HMM’s total equity to be $8.5 billion (KRW 11.1 trillion). This translates into an implied P/B multiple of 0.48x. The average P/B multiple for a sample of peer companies comes out to be 0.75x; thus, executing the transaction at 0.48x, Harim also ends up with a quality deal.
Following the announcement, HMM’s stock surged 32 percent between December 17 and December 22, 2023 compared to the Drewry Container Equity Index rally of 13 percent in the same period.
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