KDB ends talks with Goldman on Daewoo sale

Deals

A top shareholder in Daewoo Shipbuilding and Marine Engineering Co Ltd said it had withdrawn from talks to have Goldman Sachs manage the sale of the South Korean shipbuilder.

State-run Korea Development Bank (KDB) and other banks want to sell their 50.4%

 stake in the world's third-largest shipbuilder and KDB picked the Wall Street bank in April to handle the deal.

“We had been in talks with Goldman, a preferred negotiator, to manage the deal,” a KDB spokesman said by telephone. “But Goldman said it could not accept our requests, so the talks ended.”

He declined to give any details on those requests. Goldman Sachs declined to comment.

The sale is expected to be the country's biggest M&A transaction this year, fetching more than $4 billion, based on the stake's market value of 4.15 trillion won ($4 billion).

Local media reported, without citing sources, that the KDB had asked Goldman Sachs to address a potential conflict of interest because the US bank had invested in a Chinese shipbuilder. The shipbuilding company was not identified.

Ernst & Young has been selected as the accounting adviser and South Korean law firm Lee & Ko as legal adviser.

The deal has drawn interest from a number of domestic companies, including steel giant POSCO and South Korean business group Hanwha.

Goldman Sachs topped South Korea's M&A arrangers' league table in 2007, when it managed a sale of shares in broadband provider hanarotelecom shares by a consortium led by American International Group to SK Telecom. (Reuters)

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Chain Bridge to be closed for traffic for 18 months City

Chain Bridge to be closed for traffic for 18 months

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.