The Korean news service Yonhap reported that Hyundai Merchant Marine (HMM) announced Monday that it plans to raise 114 billion won ($112 million) by issuing new shares to an investor.
HMM, the country's second largest shipping company after Hanjin, will sell 6.81 million convertible preferred shares worth 57 billion won to Market Vantage Ltd., a Hong Kong-based investment firm, and make a similar sale to Market Vantage in the second half of the year. The preferred shares can be converted into common stock after one year. Market Vantage, already controls a 1.73-percent stake, or 2.92 million shares, in HMM.
The new service quoted a press release from HMM that said "the arrival of fresh funds is noteworthy because it does not involve asset sales, and the money will come in the form of investment that can reduce debt levels and improve overall financial health."