SK Shipping to become Asia's largest LNG carrier operator after asset swap
SK Shipping and H-Line Shipping will swap vessels and contracts, making SK Shipping Asia's largest LNG carrier operator and creating K-LNG.
South Korean shipping companies SK Shipping and H-Line Shipping are set to undergo a major asset swap that will reshape their operations and create Asia's largest LNG carrier operator.
The deal, announced by their owner, private equity firm Hahn & Co., will see SK Shipping acquire 16 LNG carriers and their associated long-term contracts from H-Line Shipping. In exchange, H-Line will receive 12 tankers, long-term contracts, and approximately $300 million in cash.
Following the transaction, SK Shipping will operate a fleet of 32 LNG carriers and 14 LPG vessels, making it the third-largest LNG carrier operator in the world. The company will be rebranded as K-LNG.
H-Line Shipping, meanwhile, will pivot to become a focused tanker and bulk shipping operator. Hahn & Co. stated that the reshuffle is designed to improve scale and operating efficiencies at both companies, positioning K-LNG to capitalise on growing global demand for LNG.
Both companies are controlled by Hahn & Co., which acquired a controlling stake in SK Shipping in 2018 and established H-Line Shipping in 2014 through the acquisition of Hanjin Shipping's long-term dry bulk business.