The acquisition of Daehan Shipbuilding by STX Corporation is likely facing hurdles over deal terms, reported News Pim.
STX is the listed South Korean shipbuilder, while Daehan Shipbuilding is an unlisted peer.
The report cited industry sources as saying that STX has been in discussions with the creditors of Daehan, over the debt-equity ratio at the latter, in case STX goes ahead with the deal. But the two parties have not yet reached an agreement and talks have now been suspended for a while, the report added.
An STX insider was cited as saying that the company is yet to be informed about any cancellation of the deal, by Daehan’s creditors.
As reported earlier, South Korean state-run Korea Development Bank placed Daehan Shipbuilding—whose total assets as of last year stood at KRW 514bn (USD 446m)—up for sale, following which, the STX Group entered into acquisition talks.
Source: News Pim (translated)
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