Four bidders, including two foreign funds, are in talks to acquire South Korean builder Ssangyong Engineering & Construction Co., industry sources said on Wednesday.

Dubai’s sovereign wealth fund and a Singaporean private equity fund were selected as qualified bidders for the takeover of Korea’s 19th-largest building firm by construction capacity, sources said. The other two domestic bidders are Samra Midas Group and Steel & Resources.

Ssangyong E&C, which has been under a debt workout program since early this year due to a credit crunch, is expected to be sold for around 300 billion won ($269 million).

Woori Investment & Securities, the underwriter of the deal, shortlisted these four bidders as qualified buyers from among the seven applicants who signed letters of intent for the preliminary bid.

Industry experts expect the overseas bidders to have a higher possibility of acquiring the South Korean builder because of their deep pockets. Dubai’s sovereign wealth fund boasts the second largest assets under management in the United Arab Emirates, behind Abu Dhabi’s sovereign wealth fund.

The Singapore fund has been expressing interest in Ssangyong E&C as the builder has gained a good reputation in Asia by successfully completing landmark buildings such as Singapore’s Marina Bay Sands Hotel.

Samra Midas Group, formally Samra Construction, has a slight edge over its Korean competitor, according to sources.

It has acquired a number of local small and mid-sized builders in a bid to strengthen its construction portfolio, but has been struggling with securing overseas orders due to the lack of experience.

The other Korean bidder, Steel & Resources, a steel scrap manufacturer and distributor, has been trying to raise capital of $400 billion from a U.S. fund in a bid to take over Ssangyong E&C.

Woori Investment & Securities and YEIL Accounting Corp. will complete preliminary evaluation and start the actual bidding process in mid-December.

The formal contract is expected to be signed in February next year after finishing due diligence and price negotiation processes.

By Park Han-na (hnpark@heraldcorp.com)