June 18, 2015

 

Harim Group buys 58% of dry bulk carrier
 
 
 

Harim Group, South Korea's biggest poultry breeder and animal feed maker, will buy over debt-ridden dry bulk carrier, Pan Ocean, in a deal which involved an offering of one trillion won (US$905 million) for a 58% stake.

 

The merger will help to promote the synergy and efficiency Harim requires with an established system to transport grains (mostly imported from the US and Brazil) used in feed manufacturing as well as saving costs. 

 

The deal was, however, not without its challenges as minority stakeholders were initially dissatisfied with terms of the agreement. Following a request by Harim to lower capital, a judicial intervention led to an offering of a capital reduction ratio of 1.25 to 1, a decision largely favoured by shareholders and creditors.

 

The deal could conclude by the end of July this year.

 

International companies like Cargill, ADM and Louis Dreyfus, play key roles in fulfilling South Korea's grain needs, especially in the aspects of supply, acquisition and transportation.

 

Remarking on Harim's move to take over Pan Ocean, the spokeswoman emphasised that achieving autonomy in receiving grains will be crucial "in the longer term".

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