South Korea’s Hanwha Group is close to agreeing a $1.3bn deal to buy a major stake in Daewoo Shipbuilding & Marine Engineering.
The deal involves Hanwha taking a 49.3% stake in the South Korean shipbuilder’s management rights, mainly from the current largest shareholder, Korea Development Bank (KDB), following a paid-in capital increase.
KDB’s shareholding will be reduced from 55.7% to 28.2%.
A basic agreement between DSME shareholders was made in late September. Hanwha has now concluded its due diligence and The Korea Times reported that contracts could be signed as early as this week, with the deal finalised around the middle of next year.
It will be the second time Hanwha has attempted to buy a majority stake in DSME, after a failed bid in 2008.
DSME builds South Korean Navy ships and could complement Hanwha’s military business.
Hanwha is said to be preparing plans to upgrade the shipbuilder with a wide-ranging investment in facilities.
State-backed KDB is reducing its ownership of South Korean shipbuilding and shipping stocks.
It is also cutting its 20.6% shareholding in Hyundai Merchant Marine.
