South Korea’s Pan Ocean has confirmed chicken processor Harim has been selected as the preferred bidder for its fleet. In a brief statement following a public auction, South Korea’s Pan Ocean said bidding had closed on Tuesday under a bankruptcy court-approved scheme to find a new owner.
Harim is teaming up with Korean private equity group JKL Partners for the takeover. It is interested in reducing its shipping costs.
Investment banking sources cited by the Yonhap news agency said Pan Ocean had been priced at about $968m.
Pan Ocean filed for court receivership in June 2013 and carried out a $1.17bn debt-for-equity swap that saw lenders take over the company.
Pan Ocean fleet consists of around 90 vessels, of which more than 70% are bulkers. Pan Ocean is also due to take delivery of four bulker newbuildings in 2016.
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