Hanwha's takeover of Daewoo Shipbuilding can be delayed one month: KDB

SEOUL, Dec. 28 (Yonhap) -- South Korea's state-run Korea Development Bank (KDB)
said Sunday it can delay a deal to sell Daewoo Shipbuilding & Marine Engineering
Co. to Hanwha Group by one month.
Hanwha signed a preliminary deal in November, with KDB to buy a 50.37 percent
stake in the world's No. 3 shipbuilder for an estimated 6 trillion won (US$4.6
billion), and full payment to be made by late March. Citing worsening financing
conditions, however, Hanwha asked KDB on Tuesday to extend the payment deadline
or accept payment in installments.
On Friday, Hanwha said it is necessary to conduct due diligence on the
shipbuilder before signing a formal takeover deal due on Monday, hinting at its
hope to delay the deal.
"The takeover deal should be signed on Monday ... But given the impact of the
successful completion of the deal on the local economy, KDB can delay exercising
its right to sell the shipbuilder until Jan. 30, 2009," KDB said in a statement.
Hit by global financial turmoil, Hanwha has been facing difficulty in raising
money through the sale of its holdings in real estate and Korea Life Insurance,
the nation's No. 2 life insurer, market watchers say.
sooyeon@yna.co.kr
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