KAMCO to invite bidders for Daewoo Int’l this month
The state-run Korea Asset Management Corp. (KAMCO) will put Daewoo International Corp. for sale late this month as part of efforts to offload state-owned stakes in the trading company, the company said Wednesday.
The national committee in charge of managing public funds plans to send invitational letters to investors around Jan. 25, according to the debt clearer and financial authorities.
KAMCO, the biggest shareholder in Daewoo International, a trading company which is also focused on overseas resource development, has been moving to sell a 68 percent stake, jointly held by the state-run Korea Finance Corp., the national pension fund and other state agencies. The stake is valued at 2.2 trillion won ($1.9 billion).
In the same invitation, the committee is also expected to put a 40 percent holding in Kyobo Life Insurance Co. up for sale. The holding accounts for Daewoo International’s 24 percent share and KAMCO’s 9.9 percent interest with 5.9 percent held by the Export-Import Bank of Korea.
Source: Kisline (Click to enlarge)
In this article Daewoo International Sale to Start in Earnest, from Maeil Business Newspaper in Novermber of 2009, it stated that Korean company POSCO is interested in acquiring Daewoo International, due to the synergies they could reap through utilizing the trading company’s global network.
Quoting POSCO CEO Lee Dong-hee from mid-October 2009, as saying:
“(the) proportion of (POSCO’s) exports has surged (from) 35 percent to 38 percent which calls for the company to expand into the overseas market,” adding
“(the) sale of Daewoo International has caught our attention as we are currently considering starting a new business in the energy industry or the commodities industry,” .
Daewoo International
Daewoo International (047050:KS) was spun off from Daewoo Corporation in 2000, as part of the group’s “workout” restructuring, emerging as a company dedicated to international trading, manufacturing and distribution.
On August 31, 2009, the Company established a Australia-based wholly owned subsidiary, Daewoo International Australia Holdings Pty Ltd, to acquire 5% stake in Australia-based Narrabri coal mine. including international trading, manufacturing, sales, and resource development
In 2008, Daewoo International had sales of KRW 11.045 trillion, with an operating profit of KRW 156 billion, with a market cap. of KRW 3.5 trillion at the time of writing.
(Sources: Maeil Business Newspaper, Kisline, Korea Herald, Daewoo International, Bloomberg)
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