South Korea’s major financial group Hana Financial Group Inc. is set to become a joint owner of H-Line Shipping, a bulk carrier carved-out from now-defunct Hanjin Shipping, together with local private fund Hahn & Co.

The two will launch a 1.8 trillion won ($1.45 billion) fund to acquire a full stake in H-Line Shipping. They have signed a share purchase agreement and a co-general partner deal on May 15, industry sources said Friday.

To acquire the full stake, Hana Financial Group and Hahn & Co. will invest 1 trillion won as co-general partners and the remaining 800 billion won will be pooled from select institutions. Hana Bank will lead-manage the acquisition financing from institutions.

H-Line Shipping was founded in 2014 after carving out from the country’s top sea carrier Hanjin Shipping that went bankrupt. It then merged the long-term dry bulk shipping business of Hyundai Merchant Marine in 2016 to become largest in the industry.

Long-term contracts from Korean big companies like Posco, Korea Electric Power Corp. (KEPCO), Hyundai Glovis and Korea Gas Corp. drove stable revenue of the bulk carrier. Recently it also added orders from Brazil’s mining giant Vale and Swiss energy and commodities company Vitol.

Last year, H-Line Shipping posted an operating profit of 186.9 billion won on sales of 719 billion won.

With the latest partnership, Hana Financial Group aims to strengthen ties with Hahn & Co., raise its investment capability and create synergy within group. Hahn &Co. also expects to secure stable revenue source from the promising business and create additional business opportunities from strategic partnership with Hana Financial Group.

“Hana Financial Group has entered a strategic partnership with Hahn & Co. at this time. We’re planning to expand cooperation in various areas like M&As and blind funds,” said a Hana official.

Hana Financial Group shares finished Friday 2.51 percent lower at 25,250 won in Seoul.

By Park Jae-young and Lee Ha-yeon

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