Hanwha becomes new owner of Daewoo Shipbuilding... Confirmation after approval of merger review

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Hanwha Group announced that it would buy Daewoo Shipbuilding & Marine Engineering for KRW 2 trillion.

Daewoo Shipbuilding & Marine Engineering has been under the management of Korea Development Bank, a state-run bank established by the government for over 20 years.

Reporter Jeon Yeon-nam.

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government handover Daewoo Shipbuilding & Marine Engineering to Hanwha Group is to issue 2 trillion won worth of 49.3% shares.

Hanwha will rise as the largest shareholder, while Korea Development Bank will descend to the second largest shareholder as its stake is reduced from 55.7% to 28.2%.

The government has been considering selling Daewoo Shipbuilding since the takeover committee, believing that there is no chance that Daewoo Shipbuilding will survive on its own.

[Kang Seok-hoon / Chairman of Korea Development Bank: It was found that the possibility of normalization by self-power was low, and in order to improve the constitution and strengthen mid- to long-term competitiveness, the fundamental solution is to find a competent private owner (I judged)] I

contacted several large corporations, and Hanwha has said hello.

At one time, it was considered to sell the company into special ships such as warships and merchant ships such as LNG carriers, but it was decided to sell the whole.

[Kang Seok-hoon/Chairman of Korea Development Bank: Since the conversation was conducted on the premise that Hanwha was talking from the beginning...

.]

In order to prevent controversy over preferential treatment, we plan to conduct an open bidding for the next three weeks to see if there are any companies that offer better conditions than Hanwha.

After that, if Hanwha is decided as the final investor, the main contract is expected to be completed within this year.

The final sale will be confirmed once the foreign competition authority approves the merger review.

Unlike the acquisition of Hyundai Heavy Industries, the Korea Development Bank predicted that there would be no major problems as it was not a merger between the shipbuilding industry.

As for how to recover 4.2 trillion won of public funds invested in the past seven years, he said that a significant part of it could be resolved if the stock price rises after management improves.