The Second Coming Of Macquarie’s Latest Korea Fund
The acquisition of 40 percent of a stake in South Korea’s Hanjin Terminals by Macquarie comes at a price that puts the value of the terminals business in the vicinity of USD 870 million.
The 40% stake in Hanjin Terminals of South Korea is credited to the latest Korea fund from Macquarie. Although the actual details of the amount paid was not disclosed, Hanjin made an announcement putting the value of the entire business at USD 870 million.
Hanjin Shipping is included in Hanjin Terminals with its marine terminal operations spread across six locations, Kaohsiung, Taiwan, Osaka and Tokyo in Japan and Long Beach and Seattle in the US. In the case of Japan, however transaction is confined to administration of the terminal facilities alone.
The observation by David Russel, managing director of Macquarie Korea Opportunities Fund is that Hanjin Terminals occupies a strategic position on one of the fastest growing trade routes in the world. This enables it to take advantage of the escalating demand for container terminals of limited capacity. He also highlights the collaboration with one of the most prominent business groups in Korea. The business comes under Macquarie’s key target asset class of container terminals.
Apart from retaining ownership of the remaining 60% of Hanjin Terminals, Hanjin Shipping will continue to be in control of Hanjin Terminals management. Jung Won Park, president of Hanjin Shipping describes the deal as an effort to boost market share in marine facilities operation without compromising the global superiority in shipping and port facility management. The deal is also expected to give a more accurate portrayal of the value of their terminal business.
The Macquarie Korea Opportunities Management-controlled Macquarie Korea Opportunities Fund (MKOF) a long-term infrastructure investment fund will be behind the investment. Funds to the tune of $825 million have been pledged.
This marks the second investment for MKOF. Earlier in March, MKOF secured a 49% stake in South Korean gas distribution company SK E&S at a confidential price. SK E&S has ownership of 25% of the gas distribution market in South Korea and caters to 2.5 million customers with 7,700 kilometers of distribution assets.
Now that’s a Surprise! Kim Jong Il actually apologized for North Korea for conducting nuclear testing?!! He said he didn’t have plans to test anymore. Something just doesn’t sound right about that one.
October 20th, 2006 | #