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Hanwha bags DSME controlling stake

Hanwha bags DSME controlling stake

Seoul: The bidding process for Daewoo Shipbuilding & Marine Engineering has come to an end today, with the Hanwha Group, selected as preferred negotiator for the 50.4% controlling stake by the Korea Development Bank (KDB), DSME's main creditor.

According to the Korea Times, the energy and chemical-focused local conglomerate's winning bid was between 6 to 7 trillion won, about 1 trillion more than rival Hyundai Heavy. The price is almost as high as DSME's assessed market value before the financial turmoil more than halved its share price.
Hanwha is said to have scored better than Hyundai Heavy in most detailed evaluation categories including financing capacity for the deal, strategy of management after the takeover and the bidding price. Particularly, its blueprint to attract foreign investment appealed to judges, the bank said. KDB intends to complete the contract by the end of this year, following an actual inspection for three to four weeks and a price negotiation with Hanwha.

The paper also reported that Hanwha has received proposals from two non-banking European firms to fund its bid. 'The two firms are from Europe and they want to make a significant amount of investment,' a senior Hanwha official is quoted as saying. 'Negotiations are still under way.' He added that the two are firms engaged in oil exploration and are in need of oil rigs and transportation vessels.  [24/10/08]