South Korea’s private debt-clearing house United Asset Management Company (UAMCO) and local private equity fund Hahn & Company are contesting for STX Engine Co., which was placed up for sale by its creditors including state-run Korea Development Bank (KDB).
According to finance industry sources on Thursday, UAMCO and Hahn & Company have been recently shortlisted as potential buyers for STX Engine. Two investors each submitted a letter of intention to purchase an entire stake in the industrial engine maker to financial lead advisor EY Han Young and main creditor KDB on August 8.
The sellers plan to hold a main auction next month and name the preferred bidder in October with an aim to complete the sale deal by early next year.
STX Engine makes engines for both private and navy vessels as well as electronic communication equipment. It was part of now-defunct STX Group that went under court management in 2013 after suffering liquidity crisis. A group of creditors including KDB owns an 84.42 percent stake in the engine maker and STX Corp., former holding company of STX Group, 3.1 percent.
The engine maker registered a net loss of 27.9 billion won ($24.5 million) and 529.8 billion won in sales last year.
Initially, Hanwha Group, whose main business is in defense sector, had emerged as a strong contender to take over STX Engine, but the conglomerate has officially denied its bid for the engine maker for now.
By Yoo Tae-yang
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