Creditors to re-invite fresh bids for Hyundai Engineering

SEOUL, Sept. 5 (Yonhap) -- Creditors of Hyundai Engineering & Construction Co.
said Sunday that they will re-invite fresh bids for South Korea's leading builder
later this month.
The creditors said they will send out invitational notices on the Hyundai
Engineering sale on Sept. 24, receive bids in early November and select a
preferred bidder in December.
In July, the creditors, led by Korea Exchange Bank, picked BofA-Merrill Lynch and
a domestic consortium as co-managers to sell their combined 35 percent stake in
the builder, valued at up to 4 trillion won (US$3.4 billion).
They have been looking for a new owner for the construction firm since 2006 when
it ended a creditors-led debt rescheduling program, but the onset of the global
financial crisis in late 2008 has hampered their search.
Creditors acquired the stake through a debt-for-equity swap in 2001, when the
builder was suffering from a liquidity crunch.
Hyundai Group, the parent group of South Korea's No. 2 shipper Hyundai Merchant
Marine Co., is interested in buying the construction firm, once the flagship firm
of the group, which split into auto, heavy industry and trading groups after the
1997-98 Asian financial crisis.
Hyundai Motor Group, South Korea's second-largest conglomerate, which broke away
from Hyundai Group, is also moving to bid for the company.
Shares of Hyundai Engineering closed at 65,400 won on the Seoul bourse on Friday,
down 1.95 percent.
sam@yna.co.kr
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