(Seoul=NSP News Agency) eunyoung Huh Journalist = Daewoo Shipbuilding & Marine Engineering (DSME) signed a conditional investment agreement (MOU), including about capital increase, with Hanwha Group on 26th.
Through the 2 trillion-won paid-in capital increase, Hanhwa group will receive 49.3% stake and managerial rights from DSME. Korea Development Bank (KDB), DSME’s one of the biggest shareholders, also agreed to discuss measures to support DSME to attract more investments and normalize the management with other shareholders.
Moreover, after concluding the MOU with Hanhwa group, DSME will conduct a competitive bid process in the form of so-called stalking horse bid to give investors who suggest more favorable price than Hanhwa group opportunities to participate.
In other words, who will be investing in DSME will be finalized depending on the prices later offered by the bidding participants and priority rights which could be exercised by Hanhwa group.
DSME has been working on to normalize the management to date with the help of voluntary support by the creditors. Also, there had been an attempt to make an M&A deal with Hyundai Heavy Industries in 2019, which broke down after it was disapproved by the EU.
NSP News Agency eunyoung Huh Journalist firstname.lastname@example.org
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