ID :
22365
Fri, 10/03/2008 - 09:06
Auther :
Shortlink :
http://m.oananews.org//node/22365
The shortlink copeid
Korea's pension fund scraps plan to bid for Daewoo Shipbuilding
(ATTN: UPDATES with share price in 2nd para; ADDS more details throughout)
SEOUL, Oct. 3 (Yonhap) -- South Korea's pension fund has decided to scrap its plan to bid for Daewoo Shipbuilding & Marine Engineering Co. amid the global financial turmoil, officials said Thursday.
Shares of Daewoo Shipbuilding closed at 26,150 won (US$21.4) on the Seoul bourse,
down 7.1 percent.
The National Pension Service, the country's largest investor, said in August that
it may spend up to 1.5 trillion won to make a joint bid.
The pension fund has been in talks with POSCO, GS Group and Hanwha Group to
choose a partner for the acquisition of the world's third-largest shipyard.
Hyundai Heavy Industries Co., the world's biggest shipyard, also submitted its
bid for the rival shipbuilder.
"The situation is not good for the fund to make an investment into Daewoo
Shipbuilding," said an official at the National Pension Service. "The fund will
hold an investment-plan committee meeting next week to announce its decision not
to bid for the shipyard."
The fund is likely to find an alternative source of investment at next week's
meeting, according to the official.
The pension fund, with assets of around 230 trillion won, has posted a negative
return so far this year in the wake of a global financial rout.
State-run Korea Development Bank (KDB) and a government asset management agency
are seeking to sell a combined 50.4 percent stake in Daewoo Shipbuilding, which
may fetch up to 7 trillion won.
Daewoo Shipbuilding was bailed out in 2000 after its parent Daewoo Group
collapsed under a mountain of debt. KDB plans to pick a preferred bidder this
month.
The deal has drawn much attention from bidders as the winner will likely gain a
new growth engine from the shipyard's lucrative energy-related business and
strong cash flows.
So far this year, Daewoo Shipbuilding has won around $11 billion worth of orders
to build ships and offshore facilities, which accounts for about 62 percent of
this year's target of $17.5 billion. Its order backlog has reached about $42
billion. Last year its sales climbed 32 percent to 7.1 trillion won.
South Korea, home to seven of the world's top 10 shipyards, secured record orders
last year and this year because of strong demand for crude carriers and offshore
exploration equipment amid high oil prices.
sam@yna.co.kr
(END)
SEOUL, Oct. 3 (Yonhap) -- South Korea's pension fund has decided to scrap its plan to bid for Daewoo Shipbuilding & Marine Engineering Co. amid the global financial turmoil, officials said Thursday.
Shares of Daewoo Shipbuilding closed at 26,150 won (US$21.4) on the Seoul bourse,
down 7.1 percent.
The National Pension Service, the country's largest investor, said in August that
it may spend up to 1.5 trillion won to make a joint bid.
The pension fund has been in talks with POSCO, GS Group and Hanwha Group to
choose a partner for the acquisition of the world's third-largest shipyard.
Hyundai Heavy Industries Co., the world's biggest shipyard, also submitted its
bid for the rival shipbuilder.
"The situation is not good for the fund to make an investment into Daewoo
Shipbuilding," said an official at the National Pension Service. "The fund will
hold an investment-plan committee meeting next week to announce its decision not
to bid for the shipyard."
The fund is likely to find an alternative source of investment at next week's
meeting, according to the official.
The pension fund, with assets of around 230 trillion won, has posted a negative
return so far this year in the wake of a global financial rout.
State-run Korea Development Bank (KDB) and a government asset management agency
are seeking to sell a combined 50.4 percent stake in Daewoo Shipbuilding, which
may fetch up to 7 trillion won.
Daewoo Shipbuilding was bailed out in 2000 after its parent Daewoo Group
collapsed under a mountain of debt. KDB plans to pick a preferred bidder this
month.
The deal has drawn much attention from bidders as the winner will likely gain a
new growth engine from the shipyard's lucrative energy-related business and
strong cash flows.
So far this year, Daewoo Shipbuilding has won around $11 billion worth of orders
to build ships and offshore facilities, which accounts for about 62 percent of
this year's target of $17.5 billion. Its order backlog has reached about $42
billion. Last year its sales climbed 32 percent to 7.1 trillion won.
South Korea, home to seven of the world's top 10 shipyards, secured record orders
last year and this year because of strong demand for crude carriers and offshore
exploration equipment amid high oil prices.
sam@yna.co.kr
(END)
