Monday, July 21, 2014
Hyundai sells logistics group to Japan’s Orix
Hyundai Group made a deal to sell its logistics unit to a consortium led by Japan’s commercial finance company Orix, in order to shore up its finances.
Orix teamed with Hyundai Merchant Marine to buy 88.8 percent of Hyundai Logistics Company for $584 million. As part of the restructuring agreement, Hyundai Group will buy the 20 percent state in Hyundai Elevator that was owned by the logistics group.
The sale piques hopes that Hyundai Group, which has raised $2.58 billion selling assets, is recovering after a downturn in its shipping business.
"We have undertaken an aggressive restructuring plan to get funds and reduce debt," Hyundai Group said in the statement. "We believe this will provide an impetus in restoring market confidence in the group."
"The deal will help ease Hyundai Group’s cash problems for now," said Jay Ryu, an analyst at Daewoo Securities Co. in Seoul. "Still, the shipping industry is weak and is only beginning to recover. The industry needs to recover faster or the group won’t be able to fully recover from its current situation."
For more of the Bloomberg story: www.bloomberg.com
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