Hyundai Engineering Falls on Concerns of Sale Delay
Hyundai Engineering & Construction Co., fell the most in almost five months in Seoul on concern Korea Development Bank may delay selling its stock in the company, holding up expansion plans, according to Bloomberg.com. Hyundai Engineering declined 7.5 percent to close at 89,500 in Seoul. Daewoo Shipbuilding & Engineering Co., also part-owned by state-owned Korea Development Bank, fell 5.2 percent to 44,550 won, the biggest drop in more than a month. The delay may stem efforts by Hyundai Engineering and Daewoo Shipbuilding to win orders from the global surge in demand for power plants, refineries and ships. Korea Development Bank and other South Korean creditors had planned to start selling their stakes in the two companies last year.
Daewoo Put Under Pressure by Korea EXIM
South Korea’s second-largest shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME) hit a hurdle in its efforts to get capital injection after the Export-Import Bank of Korea (Korea Exim Bank) delayed necessary funding for its shipbuilding project, reports MKBN. In June, DSME won a $1.8 billion order from Danish container-shipping giant Maersk Line to build 11 ultra-large container vessels with a capacity of 19,630 TEU. The Korea Development Bank (KDB) and Korea Exim Bank…
STX Shipbuilding Likely to Enter Court-lead Restructuring
South Korean shipbuilder STX Offshore & Shipbuilding Co Ltd will likely need to enter court-supervised receivership due to financial difficulties, the firm's lead creditor Korea Development Bank said on Wednesday. STX Offshore's creditors took control of the company in 2013 after the shipbuilder was hit by falling ship prices following the global financial crisis. A Korea Development Bank spokesman said the firm's creditors will decide on how to proceed with the court receivership process by the end of the month…
No Deal Feared on Daewoo Shipbuilding
According to a report from The Korea Times, Hanwha Group and the Korea Development Bank (KDB) are locked in a game of chicken over Daewoo Shipbuilding and Marine Engineering (DSME). With the clock ticking to the year-end deadline set by the bank, the main creditor of the world's No. 3 shipyard, Hanwha is calling for more flexibility on the payment method for the $4.6b deal. Hanwha wants its payment schedule to be extended into the first quarter of next year, while KDB wants everything to be paid by the end of the year. (Source: The Korea Times)
Shipbuilders Ask for New Loan Terms
According to a March 26 report from JoongAng Daily, Korean shipyards are asking state-run lenders to increase loans and extend financing for orders as their cash holdings run out, industry sources said yesterday. According to the sources, shipbuilders called on the Korea Development Bank and the Export-Import Bank of Korea to increase their financing for shipbuilding orders and extend loans for their operations. (Source: JoongAng Daily)
Goldman Sachs to Handle Daewoo Sale
Goldman Sachs was picked to manage the sale of Daewoo Shipbuilding and Marine Engineering Co Ltd., according to a Reuters report, kicking off a deal expected to attract in excess of $4b. The sale is poised to become the biggest M&A transaction in South Korea this year, as the state-run Korea Development Bank (KDB) and other banks are putting up their 50.4 percent stake in the world's third-largest shipbuilder. The deal has reportedly drawn interest from a number of Korean companies, including steel giant POSCO.
Seoul's Effort to Calm Shipping Sector Storm
South Korea will pump $9.5bn (11 trillion won) into state-run policy lenders reeling from huge losses on loans made to the beleaguered shipbuilding and shipping sectors to help them deal with further corporate distress, says FT. South Korea's fund will support two state-run banks most exposed to shipping and shipbuilding firms currently being restructured. The China slowdown is partly to blame. The two state-run banks to be capitalised are Korea Development Bank (KDB) and the Export-Import Bank of Korea (KEXIM).
Korea to Create $1.2bln Shipping Fund
The South Korean government will create a US$1.2 billion ship investment fund to aid the shipping industry which has been struggling due to decreasing global trade. A report by South Korea's Yonhap News Agency said the fund will help shippers buy and sell vessels with less financial risk. The fund, aims to "aid the shipping industry which has been struggling due to decreasing global trade". Fund will "help shippers buy and sell vessels with less financial risk as the Korea Trade Insurance Corp. and the Korea Maritime Guarantee Insurance Co.
Daewoo Shipbuilding for Sale?
South Korea intends to sell a controlling stake in Daewoo Shipbuilding and Marine Engineering, currently valued at 2.5 billion, in the second half of 2006, according to a Reuters report. State-run Korea Development Bank (KDB) and government restructuring agency KAMCO own a combined 50.6 percent stake in the world's second-biggest shipbuilder. KDB, which is managing the sale on behalf of other creditors, has recently named JP Morgan as a lead manager for the deal.
KDB Scraps Daewoo Shipyard Sale
According to a Jan. 21 report from Reuters, Korea Development Bank (KDB) has ended talks to sell a majority stake in Daewoo Shipbuilding, worth an estimated $5b, to South Korea's Hanwha Group on differences over financial terms. (Source: Reuters)
Hyundai to Make a Bid for Daewoo
Hyundai Heavy Industries Co. plans to bid for a $3.1b controlling stake in Daewoo Shipbuilding & Marine Engineering Co. reports said. A preliminary offer will be submitted Wednesday. The preferred bidder will be announced in September and the sale will be completed by the end of October, according to the policy lender. Hyundai Heavy will compete with Posco, GS Group and Hanwha Group for the 50.4 percent holding being sold by state-run Korea Development Bank and Korea Asset Management Corp. Source: Bloomberg
Financial IUpdate on Asia and China
According to Bloomberg.com, Asian stocks rose for the first time in four days, led by financial shares, after China Merchants Bank Co. doubled its profit and Citic Securities Co. said net income jumped more than fivefold. China Construction Bank Corp. climbed the most in two weeks in Hong Kong. Fubon Financial Holding Co. led Taiwanese financial companies higher after the Economic Daily News reported they may be allowed to buy stakes in China's banks. Reliance Industries Ltd. paced gains among energy shares after saying it may join rivals to seek oil in India. The MSCI Asia Pacific Index added 0.1 percent to 153.10 as of 7:17 p.m. in Tokyo, following a three-day, 3.4 percent drop. About six stocks climbed for every five that retreated.
Hyundai Merchant Marine to buy Hanjin's 'Good' Assets
South Korea's financial regulator said on Wednesday that Hyundai Merchant Marine Co Ltd will seek to acquire healthy assets of troubled shipper Hanjin Shipping Co Ltd. The Financial Services Commission said in a statement that Hanjin will soon file for court receivership but that the impact from the filing on domestic financial markets will be limited. A Hyundai Merchant Marines spokesman told Reuters nothing has been decided on any potential acquisition of Hanjin assets and that the firm will be in talks with Hanjin lead creditor Korea Development Bank concerning future plans. Reporting by Joyce Lee and Changho Lee
SocGen Arranges Financing for Oman Shipping's Tanker Play
Oman Shipping Company, wholly owned by the government of Oman, raised $227 million in debt to back the purchase of 10 tankers, Societe Generale said on Thursday. Societe Generale was the sole arranger and sole underwriter of the transaction, which comprised a combination of commercial debt and export credit agency financing. The commercial portion of the debt package also involved Credit Agricole Corporate & Investment Bank, the Korea Development Bank and ABN Amro. Reporting by Davide Barbuscia
Goldman Sachs Reported Out of Daewoo Sale
Goldman Sachs Group Inc. is out as co-adviser of the sale of Daewoo Shipbuilding & Marine Engineering Co., according to a report on Bloomberg. According to the Bloomberg report, Korea Development Bank reversed its earlier decision to have Goldman be a preferred bidder as co-adviser of the sale of a 50.4 percent stake in Daewoo Shipbuilding, as the bank and Goldman apparently failed to reach an agreement on terms of the contract. (Source: Bloomberg)
S.Korea Shipbuilders' Lead creditors back Asset Sale, Cost Cuts
The lead creditors of two of South Korea's biggest shipbuilders have provisionally approved plans by Hyundai Heavy Industries and Samsung Heavy Industries to raise up to $4.2 billion in asset sales and cost cuts, people with knowledge of the plans said on Wednesday. The fund-raising moves come as a downturn in the global shipbuilding industry, depressed by a drop in orders from the oil industry because of lower crude prices, push the firms into heavy losses. The world's top three shipbuilders, all South Korean, reported combined net losses of $4.9 billion in 2015. Two people with direct knowledge of the matter said Hyundai Heavy's lead creditor…
Korea to Inject $2.64 bln into DSME
South Korea's state-run banks are expected to raise more than 3 trillion won (US$2.64 billion) to prevent Daewoo Shipbuilding and Marine Engineering (DSME) from being delisted, reports Korea Herald. Both are reportedly planning to draw up detailed plans within the month. The funds will be injected into the ailing shipbuilder through debt-equity swap or by purchasing newly issued shares. Meanwhile, Pulse reported that despite a recent outside audit report questioning the viability of DSME…
Korea Bank Puts 10 Hanjin Vessels Up for Sale
Korea Development Bank, the main creditor of the dissolved Hanjin Shipping Co. and state-owned entity, has put 10 Hanjin vessels up for sale in order to source back elements of its extended loans, reports Yonhap. According to the sources, potential buyers are required to submit their bids for the ships — two container ships and eight bulk carriers — by Feb. 21. Previously a South Korean court agreed to formally end Hanjin Shipping Co Ltd’s court receivership process after a two week appeal period, ending the business.
S.Korea State Banks to Inject $2.4 Bln into Daewoo Shipbuilding
Struggling Daewoo Shipbuilding & Marine Engineering Co Ltd's will receive an injection of 2.8 trillion won ($2.4 billion) from two state-run creditor banks to save it from being delisted, one of the lenders said. Daewoo's main creditor, Korea Development Bank (KDB), said in a statement it will cancel about 60 million of its Daewoo shares, and reduce the remaining stake by a ratio of ten shares to one to cut the ship builder's debt-to-asset ratio. It will then inject 1.8 trillion won ($1.6 billion) in Daewoo in a debt-for-equity swap. The Export-Import Bank of Korea will buy 1 trillion won in Daewoo-issued perpetual bonds to shore up Daewoo's finances, KDB added. ($1 = 1,149.3900 won) (Reporting by Joyce Lee; Editing by Edwina Gibbs)
Hanjin Shipping May Get OK for Restructuring
South Korea’s largest container operator by capacity Hanjin Shipping's creditors are expected to approve a corporate rehabilitation program for the struggling container line, local media reports suggest. Creditor banks of cash-strapped Hanjin are likely to give the ailing container carrier a chance to avoid bankruptcy by approving a corporate rehabilitation program, reports Korea Herald. Seven lenders, led by state-run Korea Development Bank, are expected to allow the country’s No.
Daewoo Acquisition Deal Underway
Its biggest shareholder is the state-owned Korea Development Bank, which owns a 31.3 percent stake in the company. When Daewoo Shipbuilding put itself up for sale, a three-member consortium comprised of POSCO, Hanwha and Hyundai Heavy Industries swooped. (Source: Arirang News)
Daewoo Sale Rumored to be Canceled
According to a Jan. 21 Bloomberg story, an anonymous source reported that Daewoo Shipbuilding & Marine Engineering Co.’s $4.6b sale to Hanwha Group was scrapped by Korea Development Bank. The reporting individual declined to be identified because the information is confidential, but is scheduled to be announced publicly on Jan. 22. (Source: Bloomberg)
Hanwha Asked to Resubmit Plans for Daewoo
According to a Jan. 13 report from Reuters, Korea Development Bank, in talks to sell Daewoo Shipbuilding to Hanwha Group, asked Hanwha to rework its financing plan amid speculation the estimated $5b sale could fall apart. State-run KDB, a top shareholder in Daewoo Shipbuilding & Marine Engineering, also said it would decide whether the deal could go through based on the new funding plans from Hanwha. (Source: Reuters)