State-run Korea Development Bank is close to kicking off its sale of controlling stake in Daewoo Engineering and Construction
, according to sources on Sept. 26.
KDB is currently negotiating with builders here and abroad to attract their interest in the disposal its 50.75 percent stake in the construction firm, which is worth some 1.3 trillion won (US$1.17 billion) based on its current share price.
In 2011, a private equity fund held by KDB acquired Daewoo E&C’s stake at 18,000 won a share to help the restructuring of its cash-strapped parent Kumho Asiana Group. But Daewoo E&C has lost a third of its market value over the past five years.
“The ownership of Daewoo E&C’s stake that we hold through the private equity fund will expire by October 2017 which means that we have to start the sale process from the end of this year or beginning of next year,” an official at the KDB said.
Shares of Daewoo E&C were trading at 6,260 won as of 12:30 p.m., up 130 won or 2.12 percent, from the previous session.
By Park Han-na (email@example.com