South Korean private equity giant Hahn & Co is reported to be preparing a potential sale of shipowner SK Shipping.

Business Korea cited investment banking sources as saying Morgan Stanley has been tasked with finding a buyer to take management control of the major domestic tanker, bulker and gas carrier player.

A sale has been valued at KRW 4trn ($2.9bn) by one source.

Hahn acquired a 79% stake in SK Shipping from SK Group in 2018 for KRW 1.5trn.

Since then, about 30 bulkers have been sold to streamline the business.

Profit has been rising, with operating earnings improving fivefold from 2018 to KRW 367bn in 2023.

One source said Morgan Stanley is at the stage of tapping up potential buyers. A partial sale could also be held.

The source added that such a large deal would not be easy.

Last year, Hahn brought in Evercore to explore a sale of the tanker fleet. A sale of its bulker and LNG carrier player H-Line Shipping was also reportedly being considered.

Hahn has been contacted for comment.

VesselsValue assesses the mixed SK fleet as worth $5.9bn.

The owner controls tankers, LPG carriers, bulkers and LNG ships.

The 26-strong tanker fleet includes 18 VLCCs. There are four LNG carriers on order.

Domestic or foreign shipping companies, as well as other private equity players, are all likely to bid if a tender is launched.

The 2023 sale effort fitted the usual five-year investment window of private equity groups.

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