KDB Plans to Sell Portion of Hanwha Ocean Stake Amid Shipbuilding Boom
The headquarters of the Korean Development Bank in Yeouido, which is in west Seoul, was pictured on January 11, 2024. [JANG JIN-YONG]
The Korea Development Bank (KDB) is looking to offload a portion of its holdings in Hanwha Ocean, following a significant increase—more than tripling—in the value of Hanwha Ocean shares, thanks to an upsurge in the shipbuilding sector.
This sale also signifies 25 years since it initially obtained shares in the shipbuilder’s precursor, Daewoo Heavy Industries, via a debt-for-equity conversion back in 2000.
On Monday, the Korea Development Bank (KDB) initiated a book-building process to offload part of its holdings in Hanwha Ocean via a block trade, as reported by the financial sector contemporaneously. From the 19.5% equity interest owned by KDB—amounting to 59,738,211 shares—an approximate 4.3%, representing around 13 million shares, was put up for disposal during the indicative price inquiry.
The KDB intends to offload a portion of its ownership stakes immediately and ultimately aims to divest all of its residual shares. These transactions will be carried out consecutively via further bulk trades, contingent upon prevailing market circumstances.
The bank's action follows a significant surge in the price of Hanwha Ocean shares, which have increased over threefold. These stocks rose from 27,800 won ($19) each on November 6—when Donald J. Trump was elected President of the United States—to reach an end-of-day valuation of 89,300 won this past Monday. Consequently, the worth of KDB’s holding has climbed above 5 trillion won.
The KDB anticipates that this sale will aid in maintaining its Bank for International Settlements (BIS) capital adequacy ratio. By the close of last year, KDB’s BIS capital adequacy ratio was recorded at 13.9%, only slightly above the Financial Services Commission’s suggested threshold of 13%.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG HYE-JEONG [lim.jeongwon@joongang.co.kr]
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