South Korea to privatize Daewoo Ship immediately
South Korea will privatize state-invested firms including Daewoo Shipbuilding and Marine Engineering , its finance minister said.
State-run Korea Development Bank, which is set to be privatized, built up stakes in companies such as Daewoo Shipbuilding, Hyundai Engineering & Construction Co and chip maker Hynix in the wake of 1997-98 Asian financial crisis and subsequent liquidity problems.
Shares in Daewoo Shipbuilding, which will be put up for sale by its top shareholders this year, rose by as much as 5%, as the minister's comment cleared investor concerns over a further delay in the bidding process of an estimated $4 billion deal. A stake of just over 50% will go up for sale.
Slow progress in the bidding process due to union protests and delays in selecting a lead manager, which coincided with a retreat in global stocks and a decision to exclude foreign bidders, has benefited potential buyers of Daewoo by reducing competition and the value of the deal by $2 billion from a year ago. (Reuters)
ADVERTISEMENT
POPIHN Raises Forecast for Fuel Consumption
Hungarian Lawmakers Ratify Finland's NATO Accession
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
