The Public Fund Oversight Committee named POSCO as the preferred bidder for a controlling stake in Daewoo International after holding a sub-committee meeting for the sale and a plenary meeting on Friday.
Korea’s Maeil Business News reports -
“Between POSCO and Lotte Group, the two companies which submitted final bids, we picked POSCO as the preferred bidder after comparing their bidding prices, fund procurement plans, management strategies and so forth,” an official at the Public Fund Oversight Committee said.
A consortium led by Lotte Group was selected as the second preferred bidder.
For the sale, bid prices became the decisive factor in the result of the sale as they were reflected 60% in determining the preferred bidder.
POSCO reportedly outpaced Lotte by offering approximately 3.4 trillion won ($3 billion) while Lotte put in about 200 billion won less.
POSCO is expected to sign a formal contract in July after due diligence. POSCO will take over a 68.1% stake in Daewoo International owned by creditors, including Korea Asset Management Corporation.
POSCO may enjoy considerable synergy in taking over Daewoo International, which possesses strong overseas networks, steel products distribution channels and overseas resourced development know-hows.
Considering that the sale marked the first successful large-scale merger and acquisitions (M&A) under the current administration, it is likely to exercise substantial influence on other remaining M&A schedules, including Hynix Semiconductor, Daewoo Shipbuilding & Marine Engineering, Daewoo Engineering & Construction, Ssangyong Motor, and Hyundai Engineering & Construction.
Stay tuned…
(Source: Maeil Business News)
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