Seoul: Creditors of Daewoo Shipbuilding & Marine Engineering have formally launched the bidding process for a 50.4% stake in shipyard.
Korea Development Bank and state-run Korea Asset Management Corp are offering 96.4 million shares they hold in Daewoo Shipbuilding. The notice, which gave Wednesday August 27 as the closing date for bids, specified that a bidder must meet the legal requirements to invest in the defense industry, a condition that effectively rules out foreign contenders. The deal is expected to fetch up to $8bn, more than double its current market valuation, due to competition from local conglomerates seeking a new growth engine and strong earnings prospects for Daewoo. POSCO, the world's fourth largest steelmaker, is seen as a strong candidate to buy Daewoo and has been seeking partners to bid with. Construction-focused GS Group and energy-to-insurance group Hanwha are also reported to be preparing bids, while would-be buyer Doosan Group recently decided to drop out of the race.
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