H-Line Shipping’s value jumps over six years Enterprise value has more than doubled since its foundation
Translated by Ryu Ho-joung 공개 2020-05-27 08:00:00
이 기사는 2020년 05월 27일 08:00 thebell 에 표출된 기사입니다.
The value of Hahn & Company (Hahn & Co)’s H-Line Shipping has more than doubled over six years.The buyout firm is replacing investors in its H-Line Shipping to provide an exit opportunity to existing backers. It will set up a new special purpose vehicle (SPV) which will acquire a 100 percent stake in H-Line Shipping. The SPV is expected to be formed with equity contributions of approximately 1 trillion won ($804 million) and senior loans worth 750 billion won.
At the end of last year H-Line Shipping’s net debt stood at 1.75 trillion won. The value of the company, calculated by adding net debt to the entire equity value, is 3.5 trillion won. This represents more than a two-fold increase from 2014 when the company was founded.
H-Line Shipping’s enterprise value (EV) in 2014 was estimated at 1.6 trillion won. It can be calculated by adding net debt at the end of 2014 to the company’s equity value calculated using the conversion price of convertible notes issued by H-Line Shipping to Hahn & Co that year.
In comparison, H-Line Shipping’s peer companies Korea Line Corporation and KSS Line have EV/EBITDA (earnings before interest, taxation, depreciation and amortization) multiples of 10x and 8.1x respectively. The value of H-Line Shipping calculated by multiplying its 2019 EBITDA of 303.7 billion won by these multiples ranges from 2.45 trillion won to 3.03 trillion won.
“H-Line Shipping is not only focused on the shipping business but opportunities to expand into business areas of logistics and infrastructure. This is also a key point of its IPO (initial public offering) marketing campaign,” an industry insider said. “The company could be valued higher if the current level of profit is maintained.”
H-Line Shipping is currently under contract with high-quality shippers such as POSCO, Korea Gas Corporation and subsidiaries of Korea Electric Power Corp. (KEPCO). It also benefits from contracts with an average remaining life of around 10 years, which could help insulate the company against the industry volatility.
H-Line Shipping’s operating income margin has been maintained around 25 percent since it surpassed 20 percent in 2014. “H-Line Shipping generates stable earnings based on long-term contracts and fixed rates,” said an official from a credit rating agency.
Hahn & Co founded H-Line Shipping in 2014 to acquire 95 percent of Hanjin Shipping’s bulk-carrier business. It bought the remaining stake in the company over the following two years. In 2016 H-Line Shipping also made a bolt-on acquisition of Hyundai Merchant Marine (HMM)’s bulk carrier unit for 120 billion won.
(Reporting by Byung-yoon Kim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- '재무개선' AJ네트웍스, 조달비용 '확' 낮췄다
- '9년만에 엑시트' 한앤코, 한온시스템 거래구조 살펴보니
- 한국타이어앤테크놀로지, 한온시스템 인수한다
- [수술대 오른 커넥트웨이브]2대주주 지분매입 나선 MBK, 주식교환 카드 꺼냈다
- [이사회 모니터]이재용 에이비프로바이오 대표, 바이오·반도체 신사업 '드라이브'
- 와이투솔루션, 주인 바뀌어도 '신약' 중심엔 美 합작사 '룩사'
- 아이티센, 부산디지털자산거래소 본격 출범
- 아이에스시, AI·데이터센터 수주 증가에 '날개'
- [이사회 모니터]서정학 IBK증권 대표, ESG위원회도 참여 '영향력 확대'
- SW클라우드 '10주년' 폴라리스오피스, “초격차 밸류업”