STX Group interested in Daewoo Engineering

(ATTN: ADDS KDB's reaction at paras 7-11)
SEOUL, Feb. 17 (Yonhap) -- South Korea's STX Group said Wednesday that it is
interested in buying Daewoo Engineering & Construction Co., the country's No.4
builder now up for sale.
Kumho Asiana Group, the parent of Daewoo Engineering, is seeking to sell the
builder after it experienced a liquidity crisis in the wake of the global
economic downturn sparked in late 2008.
"We are reviewing the takeover (of Daewoo Engineering)???. But nothing has been
decided yet," said an official at STX Group.
Daewoo Engineering is also sought by TR America Consortium. Representatives of TR
America, which participated in an earlier auction to buy a controlling stake in
Daewoo Engineering, are reportedly planning to visit Seoul this month to
negotiate the takeover.
The sale of Daewoo Engineering was delayed after Jabez Partners and TR America,
the two preferred bidders, failed to show a sufficient commitment to pushing the
deal through last year.
After the sale failed, the state-run Korea Development Bank, the biggest creditor
of Kumho Asiana, said a private equity fund led by the lender plans to buy 50
percent plus one share in Daewoo Engineering.
KDB said earlier in the day that it could start work on the takeover of the
builder as early as March, adding it has yet to form the fund.
"Early this year, three to four local big companies showed interest in
participating in the fund, but we have yet to decide details of the takeover of
Daewoo Engineering and attract investors to the fund," said an official at KDB.
"If creditors of Kumho Asiana and financial investors of the builder end
negotiations by the end of this month, we could begin the procedures of the
takeover of the builder as early as next month."
The group's creditors and financial investors of Daewoo Engineering have mixed
views over dealing with the put-back option for the builder.
Kumho Asiana promised its financial investors in 2006, when it bought Daewoo
Engineering, that it would buy back their shares -- altogether representing a 39
percent stake in the builder -- if the builder's stock price fell below 31,500
won by Dec. 15, 2009.
KDB plans to complete the acquisition of Daewoo Engineering by June.
Daewoo Engineering was previously part of Daewoo Group, which collapsed during
the 1997-1998 financial crisis.
sam@yna.co.kr
(END)