Seoul: Hyundai Heavy Industries and two other companies on Tuesday submitted preliminary bids for Hyundai Corp, a South Korean trading company, industry sources said.
BNG Steel Co. and Q Capital Partners also separately submitted letters of intent for more than a 50 per cent stake in Hyundai Corp, according to the sources.
Creditors of Hyundai, led by the state-run Korea Development Bank (KDB) and Woori Bank have been seeking to sell the trading company since last year. Hyundai Corp was bailed out by the creditors in 2004 through a debt-for-equity swap.
Late last year, the creditors extended the workout debt program for Hyundai for one year due to the global economic credit crunch, though the trading company normalized its business operations.
A primary bidder will be selected in early May, and the creditors plan to complete the sale of Hyundai Corp before July, according to the sources.
KDB holds the biggest stake of 22.53 per cent in Hyundai Corp, followed by Woori Bank with a 22.48-percent stake and Korea Exchange Bank with a 14.14 per cent stake.
Hyundai Corp has a small yard in Shandong province, China. [1/4/09]
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