Jabez Partners likely to create fund for Daewoo acquisition

SEOUL, Nov. 27 (Yonhap) -- Jabez Partners, one of two bidders for South Korea's
Daewoo Engineering & Construction Co., said Friday that it plans to set up a fund
with local banks to buy the fourth-largest builder by late next month.

On Monday, the country's Kumho Asiana Group, Daewoo's parent, said it has picked
two foreign funds -- the Middle East-based Jabez Partners and TR America
consortium of the U.S. -- for a 50 percent stake plus one share in the local
builder, estimated at 3.3 trillion won (US$2.8 billion).
However, the selection of the two bidders has sparked off controversy over
whether they could buy the builder as they have reportedly not come up with a
concrete plan to finance the deal.
"We are in talks with local banks to finance the purchase of Daewoo Engineering &
Construction Co. If the fund is formed, we will sign a deal to buy the builder by
December 24," said Choi Won-kyu, head of Jabez Partners, in a telephone interview
with Yonhap News Agency.
Choi has not discussed financial support for the acquisition with South Korea's
state-run Korea Development Bank, he said, adding he has a mind to take out a
loan from KDB if the lender offers favorable loan terms.
"We will create the fund which consists of overseas investors and domestic
investors on a fifty-fifty basis, as we want the builder to remain a South Korean
company," Choi said. Jabez Partners plans to gain control of a board of directors
and hire a professional manager to operate Daewoo Engineering & Construction, if
it buys the builder, Choi said.
Asked whether Abu Dhabi Investment Council, a sovereign wealth fund owned by Abu
Dhabi, the United Arab Emirates has teamed up with Jabez Partners, he did not
answer, citing a confidentiality agreement with potential buyers.
Jabez Partners was set up in June with a paid-in capital of 50 million won
($42,735) and opened its office here. It has seven employees.
In the meantime, Tishman Construction Corp. a U.S. builder, denied on Wednesday
investing in a bid for Daewoo and said it had only offered to advise TR America
Consortium, according to Bloomberg news agency.
On Monday, Kumho Asiana said the U.S. builder is the primary investor of TR
America consortium.
ksnam@yna.co.kr
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