The report cited president Choi Pyung-gyu as saying that his group will be considering acquiring a stake in the privately held auto parts maker if it comes with a reasonable price.

The group already owns an 8.94% stake in KDAC through S&T Daewoo, a subsidiary of the group. Choi was cited as saying that, however, if the sale price is not reasonable, the group may sell its stake together.

According to another item carried by Money Today, listed South Korean peers such as Kolon and Mando could also be suitors in the sale.

The report cited an unspecified investment bank source as saying Kolon is one of the companies that are interested in buying the car parts maker, and KDAC sale could draw interest from the listed South Korean machinery maker.

An unsourced part of the report said Kolon could also seek to acquire KDAC, in order to diversify its client base.

As reported earlier, the sale of a 50% stake in KDAC is being held by the creditors of Daewoo Group.

Sources: Money Today (translated), Edaily (translated)

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TR America Consortium will submit a deposit for acquisition talks over Daewoo Engineering and Construction (Daewoo E&C), reported Money Today.

The report cited Chairman of the consortium, Moon Jung Min, as saying that the members have reached a consensus that they would need to pay the deposit to enter acquisition talks with Korea Development Bank.

The report noted the 5% deposit could be as much as KRW 170bn (USD 148m).

As reported, Korea Development Bank, the lead creditor of Kumho Asiana Group, has requested the consortium to submit a deposit as proof it was committed to the acquisition.

See previous post ‘Daewoo E&C Update: TR consortium given a “show me the money” for context, or see here for all stories on the Daewoo E&C sale.

(Source: Money Today)

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According to an earlier report, KDB was looking to join hands with Dongkuk Steel Mill and Posco, to bid for a 50% stake in Daewoo E&C.

For a review of the story so far, see Daewoo E&C sold to Korea Development Bank, KDB seeks partner for committed relationship.

For the source article in Korean see here.

(Source: Money Today)

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(The Korea Herald)

The state-run Korea Asset Management Corp. (KAMCO) will put Daewoo International Corp. for sale late this month as part of efforts to offload state-owned stakes in the trading company, the company said Wednesday.

The national committee in charge of managing public funds plans to send invitational letters to investors around Jan. 25, according to the debt clearer and financial authorities.

KAMCO, the biggest shareholder in Daewoo International, a trading company which is also focused on overseas resource development, has been moving to sell a 68 percent stake, jointly held by the state-run Korea Finance Corp., the national pension fund and other state agencies. The stake is valued at 2.2 trillion won ($1.9 billion).

In the same invitation, the committee is also expected to put a 40 percent holding in Kyobo Life Insurance Co. up for sale. The holding accounts for Daewoo International’s 24 percent share and KAMCO’s 9.9 percent interest with 5.9 percent held by the Export-Import Bank of Korea.

Source: Kisline (Click to enlarge)

In this article Daewoo International Sale to Start in Earnest, from Maeil Business Newspaper in Novermber of 2009, it stated that  Korean company POSCO is interested in acquiring Daewoo International, due to the synergies they could reap through utilizing the trading company’s global network.

Quoting POSCO CEO Lee Dong-hee from mid-October 2009, as saying:

“(the) proportion of (POSCO’s) exports has surged (from) 35 percent to 38 percent which calls for the company to expand into the overseas market,” adding

“(the) sale of Daewoo International has caught our attention as we are currently considering starting a new business in the energy industry or the commodities industry,” .

Daewoo International

Daewoo International (047050:KS) was spun off from Daewoo Corporation in 2000, as part of the group’s “workout” restructuring, emerging as a company dedicated to international trading, manufacturing and distribution.

On August 31, 2009, the Company established a Australia-based wholly owned subsidiary, Daewoo International Australia Holdings Pty Ltd, to acquire 5% stake in Australia-based Narrabri coal mine. including international trading, manufacturing, sales, and resource development

In 2008, Daewoo International had sales of KRW 11.045 trillion, with an operating profit of KRW 156 billion, with a market cap. of KRW 3.5 trillion at the time of writing.

(Sources: Maeil Business Newspaper, Kisline, Korea Herald, Daewoo International, Bloomberg)

More From privateequitykorea

• POSCO to participate in final bidding for Daewoo International
• KDB plans to go it alone on Daewoo E&C stake acquisition
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Over the weekend the Korea Herald summarized some of the major M&A deals due to be completed in 2010.

Hynix Semiconductor

• Shareholders have restarted the sale process, and will receive LOI up to the end of January.
• Hyosung, the the sole bidder pulled out of the process earlier this month.
• Experts put the value of the stake up for sale at around $3 billion.

Once the Hynix sale is complete, KEB is expected to start the sale of Hyundai Engineering & Construction, in which it is also a major shareholder.

Daewoo Shipbuilding & Marine Engineering Co.

• Daewoo Shipbuilding, the world’s third-largest shipbuilder, is expected to be on the market early next year after Hanwha Group withdrew its bid in January.
• KDB and state-run Korea Asset Management Corp. hold a combined 50.4 percent stake.

Daewoo Engineering & Construction Co.

• Kumho Asiana Group is currently mulling over the selection of a preferred bidder for a controlling stake.
• Two foreign firms and a Middle Eastern fund submitted bids for the stake, which analysts estimated at around 3 trillion won ($2.5 billion).

Daewoo International

• The sale of a 68.8 percent stake inis expected to start in January, with steelmaker POSCO preparing a bid.

Korea Exchange Bank (KEB)

• Lone Star is seeking to sell its 51 percent stake, which could fetch as much as KRW 6 trillion.

Woori Financial Group

• The government plans to speed up the privatization of its 66 percent stake in Woori Finance, which it controls through the state-run Korea Deposit Insurance Corp.
• The KDIC recently sold a 7 percent stake in the group through a block trade, and plans to unload more shares until it holds only a controlling 50 percent stake plus one share.

Not included in the article but as earlier reported here, Daewoo Electronics is also up for sale.

(Source & Graphic: The Korea Herald)

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