Hyundai Glovis Co., the logistics unit under South Korean conglomerate Hyundai Motor Group, said on Friday that it has signed a stock purchase agreement with Eusu Holdings to fully take over Eusu Ship Management Co. for 11 billion won ($9.7 million).

Eusu Ship Management - established in 2006 - is a company that manages vessel materials, equipment, and operations, trains and supplies sailors, and provides vessel equipment and materials to shipping carriers. Last year, the company raised 24 billion won in sales. The company in the past had managed vessels of now bankrupt Hanjin Shipping Co. and has been fully owned by Eusu Holdings that has Chairwoman Choi Eun-young as the largest shareholder until being fully taken over by Hyundai Glovis.

An unnamed official from Hyundai Glovis said that the logistics company plans to incorporate Eusu Ship Management as its subsidiary and continue operations before changing the company name in the future.

Hyundai Glovis expects the latest acquisition will help enhance its competitiveness in shipping business. The company currently operates 46 vessels including 31 car carriers and 15 bulk carriers that have been already managed by Eusu Ship Management. The incorporation of the company as its own subsidiary is expected to allow Hyundai Glovis to save cost and enhance management efficiency and operation service competitiveness.

Last year, the company raised record sales of 15.3 trillion won on a consolidated basis, 16 percent of which, or 2.4 trillion won, was from its shipping business.

By Woo Je-yoon

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