The splitting of
Daewoo Heavy Industries into three firms should boost shareholder value, analysts said.
The companies will eventually benefit from the split, analysts said, calling it a "painful but inevitable choice." Analysts said the shipbuilding and machinery units would be reborn as clean companies, while Daewoo Heavy Industries Co. would become a paper company, shouldering most of the company's debts.
However, they said, Daewoo Heavy will eventually be liquidated in four or five years once it settles its internal debt issues.
A shareholders meeting approved a plan to split the company into Daewoo Shipbuilding and Marine Engineering Co, machinery maker Daewoo Heavy Industries and Machinery Ltd.,
with Daewoo Heavy Industries Co taking the remaining operations.