À̹ÌÁö È®´ë More than 10 bidders are vying for a 51 percent stake in Daewoo Engineering & Construction Co. (Daewoo E&C), raising the prospects for state-run Korea Development Bank to pocket around 2 trillion won ($1.8 billion) from the sale.
According to investment banking sources on Monday, Korea¡¯s Hoban Construction Co., TRAC Development Group and U.S. engineering consultancy Aecom were among the 10 candidates that submitted their preliminary bids for the country¡¯s third largest builder.
Hoban Construction is said to be the most eager candidate with ambition to become the No. 3 construction company through the merger with Daewoo E&C. It had bid for Kumho Industrial Co. in the KDB-led auction in 2015 and managed to scale up through the purchase of Ultra Construction & Engineering last year.
TRAC Development Group, a Seoul-based development investor, is also reported to have taken part in the bid under a consortium with two large Indian construction companies. This is its second bid for Daewoo E&C as it also attempted to buy the company from Kumho Asiana Group in 2009. The investor is currently engaged in the reconstruction of Iraq and boasts a strong global network, which it plans to further expand by acquiring Daewoo E&C.
KDB, the main creditor and stakeholder of Daewoo E&C, is seeking to sell its 50.75 percent stake in the construction firm plus management rights for about 2 trillion won and name a preferred bidder by January.
The state lender acquired the stake in 2011 for 3.2 trillion won through a private equity fund.
Daewoo E&C¡¯s share price has nearly halved since then, hovering between 6,000 and 7,500 won.
Given its current share price, KDB would be losing more than 1 trillion won if it manages to sell the stake for 2 trillion won.
KDB Chairman Lee Dong-geol in a recent National Assembly audit maintained that the bank will proceed with the sale to prevent a further dent on its balance sheet.
Shares of Daewoo E&C closed Tuesday down 0.94 percent at 6,290 won.
By Park Eun-jin and Kim Hyo-jin
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]