Seoul: The state-run Korea Development Bank (KDB) said Tuesday it plans to manage the sale of Daewoo Shipbuilding & Marine Engineering Co on its own following its recent decision to drop Goldman Sachs Group as a co-adviser.
On Sunday, the KDB said it had cancelled its decision to pick Goldman Sachs as a manager to sell the world's third-largest shipbuilder, saying that the lender and the world's biggest brokerage failed to reach an agreement on terms of a contract.
The lender said Goldman Sachs has a stake in a Chinese shipbuilder, which could incur conflicts of interest. The yard's employees had made their position against Goldman Sachs vocally known
The KDB and state-run Korea Asset Management Corp., which hold a combined 50.37 per cent of the shipyard, are seeking to sell their stakes in the shipbuilder this year. A preferred bidder will be selected in August, the lender said in late March.
"The lender has decided to lead the sale of Daewoo Shipbuilding, as the KDB thought it would be better to do it alone rather than pick a new adviser," the KDB said in a statement.
Daewoo Shipbuilding posted a net profit of 78.4 billion won (US$75.1 million) in the first quarter, up 51 per cent from a year earlier. [20/5/08]
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