Korean shipyard for sale
State-run Korea Development Bank (KDB) is preparing to sell its stake in Daewoo Shipbuilding & Marine Engineering (DSME), the world’s third-largest shipbuilder, in a deal that could be worth up to 8 trillion won ($8.1 billion), reports the Korea Times.
The state-owned bank is the shipyard’s biggest shareholder controlling 31.3 percent. The Korea Asset Management Corp. (KAMCO), the manager of the government’s bailout funds into companies, is the second-largest shareholder with a 19.1 percent stake.
According to the Korea Times report, the planned sale of DSME is in line with the Korean government’s plan to privatize state-owned lenders, which hold large stakes in some companies bailed out after the Asian financial crisis at the end of the last century. KDB is also looking to sell Hyundai Engineering & Construction, Hynix Semiconductor Inc., and SK Networks.
“KDB and KAMCO agreed to put their 50.4 percent shares in DSME up for sale,' a KDB official said. “We will consider various conditions to set the price, including its current share price and a management premium. We believe it is a good time to retrieve our investment and return the company to the market.”
DSME’s net profit more than quadrupled last year to 321 billion won with revenue up 31.6 percent to 7.1 trillion won following a record $21.5 billion worth of newbuild orders. For 2008, the shipyard has targeted $17.5 billion worth of orders and has so far clinched deals for 15 ships valued at $1.9 billion.
Following the news, DSME stocks rose 10.47 percent to close at 36,400 won per share. The company’s market capitalization grew to 6.98 trillion won, still way down on its 52-week high of 12 trillion won.