One finanical investor exercises put-back option for Daewoo

By Nam Kwang-sik
SEOUL, Dec. 16 (Yonhap) -- One of 18 financial investors has exercised its right
to sell back its stake in Daewoo Engineering & Construction Co., a builder owned
by South Korea's Kumho Asiana Group, a group official said Wednesday.

The other investors, however, have accepted the group's request to hold off on
exercising the put-back option until Jan. 15, the official said, requesting
anonymity.
The official did not reveal the name of the investor that sold its stake. It
recouped its investment of 100 billion won (US$85.8 million) on Tuesday, he said.

Cash-strapped Kumho Asiana made the request early this month to state and private
banks not to sell their shares, so as to help it sell Daewoo Engineering.
On Nov. 23 the group shortlisted two funds, Jabez Partners Co. Ltd. and the
U.S.-based TR America Consortium, as the preferred bidders for a controlling
stake in the construction unit.
The group plans to choose one of the two prime bidders for the builder this week
and wrap up the deal within the year.
Kumho Asiana promised its financial investors in 2006, when it bought Daewoo
Engineering & Construction, that it would buy back their shares -- altogether
representing a 39 percent stake -- if the builder's stock price fell below
31,500 won by Dec. 15, 2009. Under the deal, investors can exercise their option
any time between Dec. 15 and Jan. 15.
Shares of Daewoo Engineering & Construction rose 0.40 percent to 12,600 won as of
10:28 a.m. on the Seoul bourse.
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.
ksnam@yna.co.kr
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