South Korean private equity firm Hahn & Company plans to take a 71 percent stake in transportation, ship management, and ocean bunkering services company SK Shipping as its parent firm, chemicals to shipping company SK Group, has agreed to give up its controlling interest.

Hahn & Company will own the majority interest through the issuance of 1.5 trillion won ($1.32 billion) of new SK Shipping shares.

Proceeds of the sale will be used to pay off most of SK Shipping’s debt, improving its debt ratio from 2,400 percent to 300 percent.

SK Shipping said that it will continue to provide stable transportation services to SK Group.