KDB to make final decision on shipyard sale next week

(ATTN: ADDS share prices of Hanwha units in last 2 paras)
SEOUL, Jan. 16 (Yonhap) -- State-run Korea Development Bank (KDB) said Friday
that it will make a final decision next week on a deal to sell a controlling
stake in Daewoo Shipbuilding & Marine Engineering Co. to Hanwha Group.

Hanwha offered earlier this week to buy a part of the 50.4-percent stake in the
world's third-largest shipbuilder held by KDB and a state asset manager, but its
proposal was rejected.
KDB has called on Hanwha to submit a new and realistic funding plan for the
takeover bid within the week, saying the original plan was not sufficient enough
to strike a deal. The bank also threatened to scrap the deal unless Hanwha meets
a Jan. 30 deadline to seal the contract.
"Hanwha did not submit a new plan for the funding of the takeover and continued
to call on us to sell part of the stake," said an official at KDB. "Next week, we
will make a final decision on whether to go ahead with the deal or not."
Hanwha, picked as the preferred bidder in October, reportedly offered more than 6
trillion won (US$4.36 billion) for the takeover of the controlling stake in the
shipyard.
But the group has faced difficulty in raising money through its sale of stakes in
real estate and Korea Life Insurance, the nation's No. 2 life insurer, due to
global financial turbulence.
Earlier, KDB offered to buy part of assets held by Hanwha through a private
equity fund to help the group secure funding for the takeover of Daewoo
Shipbuilding.
Meanwhile, shares of Hanwha subsidiaries soared as news of a possible breakdown
in the deal relieved investor jitters over how the group would secure funding
amid business uncertainties.
Hanwha Corp., the group's flagship company, jumped 13.32 percent to 26,800 won
with Hanwha Chemical Co. surging 10.9 percent to 7,630 won.
sam@yna.co.kr
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