Hanwha to take 50.4 per cent in Daewoo Shipbuilding for around $4.5 billion

25 October 2008

South Korea's Hanwha Group has won the bid to acquire a 50.4 per cent stake in Daewoo Shipbuilding & Marine Engineering, the world's third-largest shipbuilder, for around $4.5 billion.

Hanwha will acquire the 50.4 per cent stake held by state-run Korea Development Bank (KDB) as the preferred bidder for a controlling stake in Daewoo Shipbuilding & Marine Engineering,KDB said.

"Hanwha was found to best fit our criteria of   selection, including bid price, management ability and fund-raising plan," Chung In-Sung, deputy governor of the KDB, said at a press conference.

Chemicals-to-brokerage group Hanwha beat rival bidder Hyundai Heavy Industries in the bid, estimated to be worth around $4.5 billion. KDB, however, declined to reveal the bid price.

Banking sources in Seoul expect Hanwha Group's final bid to be in excess of $4.5 billion (6 trillion won). The current market value for the 50.4 per cent stake in Daewoo Shipbuilding is 1.06 trillion won ($756 million).

Steelmaker Posco, another bidder,had to pull out of the contest after its consortium partner GS Group abruptly walked out of the bidding process.