KDB to Sell Daewoo Shipbuilding
Korea Development Bank (KDB), which has been looking for a lead manager to replace Goldman Sachs, said it would sell Daewoo Shipbuilding & Marine Engineering on its own, Korea Times reported.
Deloitte Anjin is known to have already made contracts with Hanwha and Doosan, potential bidders for the shipbuilder. Hence, the consulting firm had to drop the proposal from KDB due to conflicting interests.
KDB, the largest shareholder of the shipbuilder, had selected Goldman Sachs as the lead manager of the sale, but cancelled after finding out that it had invested in a Chinese shipbuilder.
As Daewoo had supplied submarine and other vessels to the Navy, there was concern about possible military technology leakage once Goldman Sachs took the deal. KDB hence requested Goldman Sachs to take measures to minimize any possible conflicting interests regarding its investment in the Chinese shipbuilder. Goldman Sachs, however, rejected the request.
KDB held a committee to select a lead manager, but failed to find a suitable company.
The committee decided the bank's mergers and acquisitions (M&A) team should manage the selling of its own stake in the shipbuilder, without an outside manager.
Some are pointing out that it doesn't look reasonable for KDB, the largest shareholder of Daewoo, to be the manager of the sale including its own stake. However, KDB said there is no problem.
Source: Korea Times