South Korea’s top steelmaker POSCO, conglomerate Lotte Group, and Jinhan Global consortium were among three bidders seeking to buy a controlling stake in Daewoo International Corp., the state-run debt clearer, KAMCO, said Monday.
The English version of Yonhap News reports –
POSCO, Lotte Group, a major local conglomerate, and a consortium, Jinhan Global (formerly known as Daewoo Partners), have submitted preliminary bids for acquiring a 50 percent stake plus one share in the trading company, according to the Korea Asset Management Corp. (KAMCO).
The deal is estimated to fetch between KRW 2.3 – 2.6 trillion (US$2.0 – 2.3 billion).
KAMCO said it will select a preferred bidder in May and is seeking to clinch a formal agreement on the sale in June.
POSCO has expressed its interest in bidding for Daewoo International, a former unit of the now-defunct Daewoo Group that is focused mainly on energy development. The steelmaker expects that a potential takeover of the trader will help it procure raw materials.
Analysts say Lotte Group is interested in securing a 24 percent interest in Kyobo Life Co., held by Daewoo International, as well as boosting business synergy through the purchase. Daewoo’s holdings of the life insurer are appealing to Lotte, which has a non-life insurance unit under its wing.
KAMCO holds a 35.5 percent stake in Daewoo International, with other creditors, including the Export-Import Bank of Korea, having a combined 32.65 percent interest in the trading company.
See here for all posts on the sale.
(Source: Yonhap)
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