ID :
159302
Tue, 02/08/2011 - 11:00
Auther :
Shortlink :
https://www.oananews.org//node/159302
The shortlink copeid
Kumho Asiana seeks to sell its stake in Daewoo Engineering
(ATTN: UPDATES with comments by Daewoo veep in last 3 paras)
SEOUL (Yonhap) - Kumho Asiana Group, South Korea's ninth-largest conglomerate, is seeking to sell its stake in Daewoo Engineering & Construction Co. to overseas investors, industry sources said Tuesday.
The group is considering selling a 24.7 percent stake in the country's fourth-largest builder via a block sale and other means, the sources said. The stake is owned by Kumho Asiana's four units -- Kumho Industrial Co., Korea Kumho Petrochemical Co., Asiana Airlines Inc. and Kumho Tire Co.
An official at a creditor bank of Kumho Asiana said details of the stake sale have yet to be determined, but creditors, including Korea Development Bank (KDB), and the group will discuss it soon.
The stake sale may fetch more than 1 trillion won (US$900 million), the sources said.
Shares of Daewoo Engineering closed at 14,200 won on the main stock market, down 0.7 percent from the previous session.
"We have decided to sell the stake in Daewoo Engineering & Construction held by Kumho Asiana's units to support the group's debt rescheduling program," another creditor bank official said, adding the proceeds from the stake sale will be used as working funds of the group's four affiliates.
Kumho Asiana's two subsidiaries -- Kumho Tire and Kumho Industrial -- have been put under a debt restructuring program since early 2010 due to a severe cash crunch sparked by the group's purchase of major local builder Daewoo Engineering & Construction in 2006.
KDB, the main creditor of Kumho Asiana, purchased the builder from the group last year.
Meanwhile, Cho Hyun-eek, vice president of Daewoo Engineering, said in a meeting with reporters that the builder plans to hold an overseas road show to promote the stake sale in the first half of the year, adding he knows creditors of Kumho Asiana are pushing for the stake sale.
Cho predicted that the share price of the builder could rise to more than 20,000 won if the stake sale is completed.
He also said he will make efforts to raise the builder's value and its share prices.
SEOUL (Yonhap) - Kumho Asiana Group, South Korea's ninth-largest conglomerate, is seeking to sell its stake in Daewoo Engineering & Construction Co. to overseas investors, industry sources said Tuesday.
The group is considering selling a 24.7 percent stake in the country's fourth-largest builder via a block sale and other means, the sources said. The stake is owned by Kumho Asiana's four units -- Kumho Industrial Co., Korea Kumho Petrochemical Co., Asiana Airlines Inc. and Kumho Tire Co.
An official at a creditor bank of Kumho Asiana said details of the stake sale have yet to be determined, but creditors, including Korea Development Bank (KDB), and the group will discuss it soon.
The stake sale may fetch more than 1 trillion won (US$900 million), the sources said.
Shares of Daewoo Engineering closed at 14,200 won on the main stock market, down 0.7 percent from the previous session.
"We have decided to sell the stake in Daewoo Engineering & Construction held by Kumho Asiana's units to support the group's debt rescheduling program," another creditor bank official said, adding the proceeds from the stake sale will be used as working funds of the group's four affiliates.
Kumho Asiana's two subsidiaries -- Kumho Tire and Kumho Industrial -- have been put under a debt restructuring program since early 2010 due to a severe cash crunch sparked by the group's purchase of major local builder Daewoo Engineering & Construction in 2006.
KDB, the main creditor of Kumho Asiana, purchased the builder from the group last year.
Meanwhile, Cho Hyun-eek, vice president of Daewoo Engineering, said in a meeting with reporters that the builder plans to hold an overseas road show to promote the stake sale in the first half of the year, adding he knows creditors of Kumho Asiana are pushing for the stake sale.
Cho predicted that the share price of the builder could rise to more than 20,000 won if the stake sale is completed.
He also said he will make efforts to raise the builder's value and its share prices.
