[Special Stock] HMM Plummets Amid Convertible Bond Stock Conversion Impact

[Asia Economy Reporter Junho Hwang] HMM is experiencing a sharp decline due to the conversion of convertible bonds held by the Korea Ocean Business Corporation into stocks.

As of 9:36 AM today, HMM's stock price is recorded at 26,600 KRW, down 9.52% from the previous day's closing price. During the trading session, HMM's stock price even fell to 26,000 KRW at one point.

Yesterday, the Korea Ocean Business Corporation announced that it exercised its stock conversion rights for 600 billion KRW worth of HMM's perpetual convertible bonds (CB) it holds. These perpetual bonds were issued to the Korea Ocean Business Corporation in March 2017, with a maturity of 30 years. The redemption is scheduled for December 9.

HMM had previously exercised its early redemption rights for these CBs, but the Korea Ocean Business Corporation did not accept the request. As a result, HMM is inevitably required to issue a large number of new shares.

Shinyoung Securities also lowered HMM's target stock price from 31,000 KRW to 27,000 KRW, reflecting the dilution of shares.