Tuesday 07 Feb 2012

Daewoo International stake estimated at KRW 3-4 trillion

The 68.15% stake in Daewoo International held by Korea Asset Management could draw bids from potential buyers between KRW 3tn-4tn, according to several media reports.

According to a report carried by Seoul Economic Daily, industry sources estimated the two South Korean companies Lotte and Posco - which have sufficient cash for the potential acquisition - may bid with bidding prices of KRW 3tn (USD 2.69bn).

Whereas the Maeil Business estimated the bidding price to be higher, estimating a range of KRW 3.6tn to KRW 4tn (USD 3.22bn – 3.58bn).

The report claimed that both companies have decided to bid for the entire 68.15% stake of the seller.

As reported earlier, state-run Korea Asset Management has been seeking to privatize a 50% plus one share stake in Daewoo International.

Proposals are expected to be submitted on 7 May.

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