Bidders Sought for Daewoo Shipbuilding
Creditors of Daewoo Shipbuilding & Marine Engineering Co Ltd are formally seeking bidders for a 50.4 percent stake by next Wednesday, Reuters said.
Korea Development Bank (KDB) and state-run Korea Asset Management Corp are the offering 96.4 million shares they hold in Daewoo Shipbuilding, according to an invitation notice carried in early Friday edition of the Korea Economic Daily.
As expected, the notice specified that a bidder must meet the legal requirements to invest in the defence industry, a condition that effectively rules out foreign contenders.
The deal is expected to fetch up to $8 billion, more than double its current market valuation, due to competition from local conglomerates seeking a new growth engine and strong earnings prospects for Daewoo.