Korea Development Bank Initiates HMM Management Rights Sale Process

Converted 1 Trillion Won of Perpetual Bonds into Stocks for Sale
Public Competitive Bidding Underway, Aiming to Finalize Contract Within the Year

KDB Industrial Bank has started the process of selling HMM. It plans to convert perpetual convertible bonds (CB) and perpetual bonds with warrants (BW) worth about 1 trillion won into shares and sell them together with existing shares.

According to the Industrial Bank on the 20th, the Industrial Bank and the Korea Ocean Business Corporation announced the joint sale of HMM's management rights and officially began the sale process.

Earlier, on April 10, the Industrial Bank and the Korea Ocean Business Corporation formed a sales advisory group and concluded through feasibility consulting that it is appropriate to start selling HMM's management rights within this year.

This management rights sale will be conducted through a public competitive bidding process under the National Contract Act, and through a two-stage bidding process, a preferred negotiation partner will be selected with the goal of signing a stock sales contract within the year.

The total shares amount to 399 million shares, and the diluted shareholding ratio including perpetual bonds currently held by the Industrial Bank and the Korea Ocean Business Corporation is approximately 38.9%. Regarding the remaining perpetual bonds, the decision on conversion will be made step-by-step according to HMM's exercise of redemption rights, and the converted shares will be handled in consultation with the acquirer in a way that minimizes the impact on the market.