Posco, Hanwha and Hyundai bid for Daewoo Shipbuilding
14 Oct 2008
Three of South Korea's major business groups - Posco, Hanwha Group and Hyundai Heavy Industries – have submitted final bids to acquire a controlling stake in Daewoo Shipbuilding and Marine Engineering Co, the state-run Korea Development Bank (KDB), which manages the sale, said.
KDB, which holds 31 per cent stake in Daewoo Shipbuilding, said it will take a decision on the priority negotiator for Daewoo Shipbuilding as early as 25 October after reviewing the proposals.
Posco had formed a consortium with the GS Group but the latter suddenly withdrew after the final submission citing differences in opinion between the two companies.
Daewoo Shipbuilding's two primary shareholders, including Korea Development Bank, are offering to sell a total of 50.4 per cent stake.
Daewoo, according to KDB CEO Min Euoo-sung, was worth 8 to 9 trillion won ($6.5 to $7.5 billion), including the management premium and he said the ability to help Daewoo grow into a global player would be one major factors to be considered.
Daewoo Shipbuilding had received orders worth over $10 billion in the first seven months of this year, with 34 per cent being for offshore vessels and marine structures.
The sale of Daewoo Shipbuilding, if it materialises, would be one of the biggest asset sales by South Korea's state-run financial institutions.