Dongkuk Steel Mill, the listed Korean steelmaker, has withdrawn their plan to participate in the acquisition of Daewoo Engineering & Construction (Daewoo E&C), reported Maeil Business.
“With no takeover proposal received from the Korea Development Bank (KDB), the company has decided that we can’t wait for the proposal to come,” the paper reported a Dongkuk official as saying.
Dongkuk Still had sought to participate as a strategic investor, in a private equity fund set up by the KDB, in a move aimed at securing stable supply lines for its steel products and expanding its business.
Update:
A Yonhap News article, citing a spokesperson for Dongkuk, reported that his Company withdrew in order to protect the interests of shareholders.
As according to the report, Dongkuk s share-price kept sliding ever since the company announced its intention to take part in KDB’s acquisition of Daewoo E&C.
Meanwhile, a report in Money Today claimed Daewoo E&C might see a slight increase in sales and operating profit for 1Q10.
The report cited an analyst at Hana Daetoo Securities, who estimated that 1Q10 sales and operating profit at Daewoo E&C could touch KRW 1.6tn (USD 1.44bn) and KRW 55.8bn, respectively. The report added, that the figures are, respectively, 4.4% and 3.4% higher than the same period last year.
See here for more stories on the sale of Daewoo E&C.
(Source: Maeil Business, Money Today, Yonhap News)
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