In today’s briefing:
- Privatization of HMM: Enormous Shares Dilution Risk
Privatization of HMM: Enormous Shares Dilution Risk
- The Korean government has initiated the M&A privatization of HMM, the largest container shipping company in Korea.
- We are Negative on the shares of HMM Co., Ltd. (011200 KS) in the next 6-12 months. We expect additional 20% to 30%+ downside risk on HMM in this period.
- Although HMM has a strong balance sheet, more investors are likely to emphasize on the negatives including excessive share dilution risk and worsening environment for the global shipping industry.
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