South Korean private equity giant Hahn & Company is making a major move in the tanker market. The firm has agreed to sell 10 Very Large Crude Carriers (VLCCs) from its SK Shipping fleet to Pan Ocean.
The Deal:
- Price: KRW 973.7 billion ($694 million).
- The 10 vessels plus their related long-term cargo contracts with major domestic shippers.
- Timeline: The deal is slated to close by April 11, 2027.
it’s the next step in Hahn’s reshaping of SK Shipping. Since acquiring a controlling stake in 2018, Hahn has aggressively pivoted the company away from risky spot market exposure and toward stable, long-term contracts.
Currently
- Operating Profit: Jumped from 73.3 billion won (2018) to 395.7 billion won (2024).
- EBITDA: Climbed from 231.7 billion won to 640.9 billion won.
The VLCC market has been surging this year, driven largely by aggressive buying from another Korean player, Sinokor (which has reportedly snapped up over 50 VLCCs recently). By selling into this strength, SK Shipping generates cash to redeploy into other sectors.
Interestingly, this deal comes after HMM South Korea’s flagship carrier looked at buying SK Shipping last year but walked away due to a valuation gap. With Pan Ocean stepping in, the fleet finds a new home while Hahn locks in the value of its turnaround strategy.