ID :
23506
Thu, 10/09/2008 - 16:31
Auther :
Shortlink :
http://m.oananews.org//node/23506
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POSCO, GS Group form consortium to bid for Daewoo Shipbuilding
SEOUL, Oct. 9 (Yonhap) -- POSCO and GS Group said Thursday that they will form a consortium to bid for Daewoo Shipbuilding & Marine Engineering Co., in a bid to maximize a synergy effect from the acquisition of the world's third-largest shipyard.
State-run Korea Development Bank (KDB) and a state-run asset manager are seeking
to sell their 50.4 percent stake in the world's third-largest shipyard bailed out
in 2000 after its parent Daewoo Group collapsed under a mountain of debt.
POSCO, Hyundai Heavy Industries Co., GS Group and Hanwha Group last month
submitted preliminary bids for Daewoo Shipbuilding.
POSCO, the world's fourth-largest steelmaker, said the two companies said they
are in talks with overseas banks to help fund a bid for the shipbuilder. "By
making a consortium, we can secure stable funding from overseas," POSCO said in a
statement.
Local companies are seeking investors to help with funding as a global credit
crunch is deepening on financial turmoil worldwide. GS Group's business portfolio
ranges from energy to construction.
The sale of the shipyard 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.
KDB wants at least 5 trillion won (US$3.64 billion) for the sale, but market
capitalization of Daewoo Shipbuilding reached 3.67 trillion won as of Thursday, a
sharp drop of more than 35 percent from its peak in October. Shares of Daewoo
Shipbuilding closed at 19,150 won, down 6.59 percent.
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
both last year and this year because of strong demand for crude carriers and
offshore exploration equipment amid high oil prices.
State-run Korea Development Bank (KDB) and a state-run asset manager are seeking
to sell their 50.4 percent stake in the world's third-largest shipyard bailed out
in 2000 after its parent Daewoo Group collapsed under a mountain of debt.
POSCO, Hyundai Heavy Industries Co., GS Group and Hanwha Group last month
submitted preliminary bids for Daewoo Shipbuilding.
POSCO, the world's fourth-largest steelmaker, said the two companies said they
are in talks with overseas banks to help fund a bid for the shipbuilder. "By
making a consortium, we can secure stable funding from overseas," POSCO said in a
statement.
Local companies are seeking investors to help with funding as a global credit
crunch is deepening on financial turmoil worldwide. GS Group's business portfolio
ranges from energy to construction.
The sale of the shipyard 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.
KDB wants at least 5 trillion won (US$3.64 billion) for the sale, but market
capitalization of Daewoo Shipbuilding reached 3.67 trillion won as of Thursday, a
sharp drop of more than 35 percent from its peak in October. Shares of Daewoo
Shipbuilding closed at 19,150 won, down 6.59 percent.
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
both last year and this year because of strong demand for crude carriers and
offshore exploration equipment amid high oil prices.
