ID :
39531
Thu, 01/08/2009 - 20:43
Auther :
Shortlink :
http://m.oananews.org//node/39531
The shortlink copeid
KDB gives ultimatum on Hanwha's shipyard takeover
SEOUL, Jan. 8 (Yonhap) -- The main creditor of Daewoo Shipbuilding & Marine
Engineering Co. threatened Thursday to scrap a deal to sell the shipyard to
Hanwha Group unless the conglomerate sticks to the Jan. 30 deadline to finalize
the contract.
The state-run Korea Development Bank (KDB) picked Hanwha in October as a
preferred bidder for the 50.4-percent stake in the world's No. 3 shipbuilder
which was placed under a debt workout program in 1999. Both sides agreed to seal
a final deal by December.
Hanwha reportedly offered 6.5 trillion won (US$4.95 billion) for Daewoo
Shipbuilding. Amid a severe credit crunch, the group demanded a delay in
payments, but KDB rejected it. Instead, the policy lender agreed to extend the
deadline until Jan. 30. and buy some of Hanwha's assets to help it raise takeover
money.
"Unless Hanwha accepts such compromises, we will disqualify the group as the
prime bidder, considering it has no will to buy the shipyard," KDB chairman Min
Euoo-sung said in an interview with Yonhap News Agency.
"The terms of sale will not be changed, and as far as I know, Hanwha is reviewing
the offer."
Min said a private equity fund formed by KDB and other institutional investors
would buy some of the group's assets and return any profits to Hanwha after
selling the assets in two or three years.
"The proposal is a 'win-win' strategy for both," Min said. "Should Hanwha not
take our offer, it can not help being translated into it not buying the stake,"
he said adding that the lender will exercise its right as a seller, including
taking downpayments estimated at 300 billion won if Hanwha does not fulfill its
requirements by the deadline.
Daewoo Shipbuilding shares have plunged by more than 50 percent since initial
bids for the stake were made in August.
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.
Also, Hanwha claimed that it could not start due diligence on the shipyard due to
opposition from Daewoo Shipbuilding's labor union, which has asked for job
security, guaranteed wages and other incentives.
Hanwha, with interests from explosives to shopping malls, is seeking to expand
into new businesses such as oil tankers and deep-sea drilling structures to boost
earnings growth.
sam@yna.co.kr
(END)
Engineering Co. threatened Thursday to scrap a deal to sell the shipyard to
Hanwha Group unless the conglomerate sticks to the Jan. 30 deadline to finalize
the contract.
The state-run Korea Development Bank (KDB) picked Hanwha in October as a
preferred bidder for the 50.4-percent stake in the world's No. 3 shipbuilder
which was placed under a debt workout program in 1999. Both sides agreed to seal
a final deal by December.
Hanwha reportedly offered 6.5 trillion won (US$4.95 billion) for Daewoo
Shipbuilding. Amid a severe credit crunch, the group demanded a delay in
payments, but KDB rejected it. Instead, the policy lender agreed to extend the
deadline until Jan. 30. and buy some of Hanwha's assets to help it raise takeover
money.
"Unless Hanwha accepts such compromises, we will disqualify the group as the
prime bidder, considering it has no will to buy the shipyard," KDB chairman Min
Euoo-sung said in an interview with Yonhap News Agency.
"The terms of sale will not be changed, and as far as I know, Hanwha is reviewing
the offer."
Min said a private equity fund formed by KDB and other institutional investors
would buy some of the group's assets and return any profits to Hanwha after
selling the assets in two or three years.
"The proposal is a 'win-win' strategy for both," Min said. "Should Hanwha not
take our offer, it can not help being translated into it not buying the stake,"
he said adding that the lender will exercise its right as a seller, including
taking downpayments estimated at 300 billion won if Hanwha does not fulfill its
requirements by the deadline.
Daewoo Shipbuilding shares have plunged by more than 50 percent since initial
bids for the stake were made in August.
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.
Also, Hanwha claimed that it could not start due diligence on the shipyard due to
opposition from Daewoo Shipbuilding's labor union, which has asked for job
security, guaranteed wages and other incentives.
Hanwha, with interests from explosives to shopping malls, is seeking to expand
into new businesses such as oil tankers and deep-sea drilling structures to boost
earnings growth.
sam@yna.co.kr
(END)
