HMM Succeeds in Gaining Foreign Capital

Hyundai Merchant Marine (HMM) recently succeeded at taking in foreign
capital by selling securities in foreign markets.
HMM announced on July 10 that it made a contract with USA AG, a worldw
ide Swiss investment bank, by selling 5 million stocks of Hyundai Elec
tronics Industries for $110 million as a first step. In order to not i
nfluence the domestic stock market while bringing in foreign capital,
HMM sold the stocks to UBS(Union Bank of Switzerland) AG directly.
Taking the foreign capital in has enabled HMM to repay $110 million in
loans. Overall, HMM profited to the tune of 60 billion won through th
e transaction. HMM bought the stock at 12,700 won per share and sold i
t at 24,500 won per share.
An official at HMM said that they speculated on additional stock sales
to raise foreign capital, and expected stock sales to affect financia
l restructuring by holding healthy stocks in the market, including the
ir other Hyundai Electronics Industries stocks.