Private equity begins exiting Pan Ocean

Poseidon 2014, Pan Ocean’s second largest shareholder, has recently evaluated investor demand for its 5.08 percent stake in the listed bulk carrier company, according to investment banking sources.

Poseidon 2014 is a special purpose investment vehicle set up by JKL Partners, a local private equity, in partnership with Jeil Holdings, Harim Group’s holdings company with business in grain and livestock feed production and distribution.

Jeil Holdings is the largest shareholder with a 50.89 percent stake in Pan Ocean.

Poseidon 2014 will be selling its 5.08 percent stake of the total 12.72 percent stake in the shipping company to retrieve its investment.

The sale to institutional investors is worth 170 billion won, industry sources say.

It will be able to gain much more than 65 billion won JKL invested to finance the acquisition of Pan Ocean in 2015.

Poseidon 2014 is expected to sell the rest of its stake in Pan Ocean in a similar way.

Pan Ocean was once a key unit of the troubled STX Group.

Harim Group acquired the company with its strategic and financial investors, including JKL, as it sought to expand Harim’s grain business overseas by using Pan Ocean’s carriers.

Last May, Pan Ocean bought two bulk carriers from Hanjin Shipping’s creditors each for $21 million for the same purpose.

“The acquisition of the carriers was a strategic investment aimed at boosting the company’s grain trading business,” the company said.

Kim Hong-guk is the owner and chairman of Harim Group with a 29.74 percent stake, according to its audit filing.