Hanjin could pick up stake in S-Oil

Hanjin Shipping Co. might join Korean Air Co. to obtain a 28.4% stake in S-Oil Corp., said a Hanjin Shipping spokesperson. S-Oil is the country’s third largest refiner by revenue. “If Korean Air asks us to jointly purchase the S-Oil stake, we will review such a suggestion for synergies coming from the stake ownership,” said Hanjin Shipping President and CEO J.W. Park. Analysts estimate the value of the S-Oil stake to be at least 2 trillion to 2.5 trillion won (US$2.09-2.62 billion). If the two companies buy the S-Oil stake, it is likely to be given the right to transport crude oil and other oil products for S-Oil, Hanjin Shipping’s president said. The Hanjin Shipping spokesman said the company plans to invest a separate 300 billion to 400 billion won (US$314.09-418.78 million) in new vessels and its overseas terminal business. (September 29, 2006)