Doosan may sell off assets to buy Daewoo shipbuilding
Doosan Group, owner of South Korea's largest excavator maker, said that it may sell property and infrastructure assets to finance a bid worth US$3.5 billion to take over Daewoo Shipbuilding & Marine Engineering Co, senior vice-president Lee Sang Ha at Doosan Infracore Co made the comments to reporters in Seoul yesterday.
The comments were confirmed by group spokesman Bae Kyun Ho.
Doosan Group affiliates including Doosan Infracore and Doosan Heavy Industries Co fell the most in more than five months yesterday in Seoul trading on speculation that they may sell shares to fund the takeover of Daewoo Shipbuilding, the world's third-largest shipbuilder. Mr Lee denied the speculation.
State-owned Korea Development Bank and Korea Asset Management Corp. are selling a 50.4 per cent stake they own in Daewoo Shipbuilding. The equity is worth about 3.53 trillion won (S$4.59 billion) based on yesterday's closing price of 36,600 won. Doosan is also looking for strategic investors to join its bid for Daewoo Shipbuilding, Mr Lee said, without elaborating.
A preferred bidder for the stake could be selected by the end of August, Korea Development Bank executive director Kim Young Kee said on recently. Posco, Asia's third-largest steelmaker, GS Group and Hanhwa Group are also keen to take over the shipbuilder. STX Group said it is considering the takeover.
Doosan Infracore, South Korea's biggest maker of construction equipment, had current assets of 1.42 trillion won at the end of March, including 31.4 billion won in cash and near cash items. Total debt was 2.31 trillion won.
Posco's current assets at the end of March stood at 9.01 trillion won, including 521 billion won in cash and near cash items. Total debt was 5.83 trillion won.
The comments were confirmed by group spokesman Bae Kyun Ho.
Doosan Group affiliates including Doosan Infracore and Doosan Heavy Industries Co fell the most in more than five months yesterday in Seoul trading on speculation that they may sell shares to fund the takeover of Daewoo Shipbuilding, the world's third-largest shipbuilder. Mr Lee denied the speculation.
State-owned Korea Development Bank and Korea Asset Management Corp. are selling a 50.4 per cent stake they own in Daewoo Shipbuilding. The equity is worth about 3.53 trillion won (S$4.59 billion) based on yesterday's closing price of 36,600 won. Doosan is also looking for strategic investors to join its bid for Daewoo Shipbuilding, Mr Lee said, without elaborating.
A preferred bidder for the stake could be selected by the end of August, Korea Development Bank executive director Kim Young Kee said on recently. Posco, Asia's third-largest steelmaker, GS Group and Hanhwa Group are also keen to take over the shipbuilder. STX Group said it is considering the takeover.
Doosan Infracore, South Korea's biggest maker of construction equipment, had current assets of 1.42 trillion won at the end of March, including 31.4 billion won in cash and near cash items. Total debt was 2.31 trillion won.
Posco's current assets at the end of March stood at 9.01 trillion won, including 521 billion won in cash and near cash items. Total debt was 5.83 trillion won.