The creditors in Daewoo Engineering and Construction will likely ask TR consortium to post a deposit as proof it is committed to the acquisition, reported the Korea Economic Daily.
TR Consortium was reported to have submitted a revised offer and said that it will again appeal to Korea Development Bank for its willingness in the acquisition of Daewoo E&C.
The Korea Economic Daily report cited an insider at a financial regulator as saying if TR Consortium wants to enter into sales talk as a preferred bidder, it has to first provide 5% of the offer as a deposit.
An unnamed insider at a creditor was also cited as saying that his group could not proceed with sales talks without a guarantee because the seller Kumho Industrial and its parent group Kumho Asiana had been already put under a debt restructuring programme.
The report cited an insider at Korea Development Bank, the lead creditor of Kumho, as saying that his company had not received any formal offer from TR Consortium and it will proceed with its plan to acquire Daewoo E&C, under agreement with financial investors in the latter.
As reported, Kumho Asiana had put up for sale a 50% stake in Daewoo E&C and the state-run Korea Development Bank had declared that it would acquire the stake before TR Consortium emerged with a revised offer.
According to other sources, representatives of the TR consortium are in Seoul at the moment attempting to meet with government and Korea Development Bank officials in order to present their case.
See yesterdays ‘Daewoo E&C Update: KDB not likely to accept TR Consortium’s revised offer‘ or here for all previous stories on the sale.
No related posts.
