Kumho Asiana faces difficulty delaying Daewoo put-back option

SEOUL, Dec. 10 (Yonhap) -- Efforts by South Korea's troubled Kumho Asiana Group
to delay a put-back option for Daewoo Engineering & Construction Co. by one month
have met with mixed reactions from investors, financial sources said Thursday.
Kumho Asiana promised a group of financial investors when it bought Daewoo
Engineering & Construction in 2006 that it would buy back a 39 percent stake in
the builder by December 15, 2009 if the company's stock price fell below 31,500
won.
The group bought a 72.1 percent stake in the builder for 6.42 trillion won, 3.5
trillion won of which was funded by financial investors including banks and
private equity funds.
Banks have taken a positive stance on Kumho Asiana's call to delay the option in
a bid to help facilitate a deal to sell the builder, the sources said.
But some investors, including private equity funds, are reluctant to accept the
group's proposal, claiming they already floated the option through asset-backed
securitization, they said.
Kumho Asiana called on financial investors to delay exercising their rights to
sell stakes until January 15, saying that if they exercise their options now it
could have a negative impact on the sale of Daewoo Engineering & Construction
that is currently underway, sources said.
Under the deal with the group, the investors can exercise their option any time
between December 15 and January 15.
ksnam@yna.co.kr
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