Samsung SDS, Posco to bid for controlling stake in Korea Express
23 Jun 2011
Samsung SDS, a unit of Korea's Samsung Group, is mulling to partner steel giant Posco to bid for a controlling stake in Korea Express, the country's largest logistics company by sales.
The final round of bidding for at least 37.6 per cent stake in Korea Express, valued at around $1.4 billion, closes on 27 June 2011.
The auction has attracted bidders like Posco, retail giant Lotte Group and food-to-entertainment company CJ Group.
Daewoo Engineering & Construction Co, which is controlled by the state-run Korea Development Bank, and Asiana Airlines Inc, who collectively own 37.6 per cent of Korea Express, are offloading their stake to a bidder expected to be finalised early next month.
Founded in 1930 as Chosun Rice Warehousing Co Ltd, Korea Express is the country's largest logistics company operating in 46 business fields, including TPL, stevedoring,
parcel delivery, inland transportation, forwarding, and logistics consulting.
It operates a nationwide network of about 10,000 express-delivery outlets and a fleet of more than 5,000 trucks and has 38 domestic branches and 29 overseas offices.
Employing over 4,734 people, the Seoul-based company had 2010 sales of 2.0977 trillion Won ($2.4 billion).
Samsung SDS is the largest global information and communication technology (ICT) services provider in Korea with annual revenues of over $3 billion and an expanding network of 12,000 employees in branches around the world.
Pohang-based Posco, is the world's third-largest steel company by market value and Asia's most profitable steelmaker. The company posted net income of $3.9 billion on revenues of $56.1 billion last year.