April 19, 2024

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[THE INVESTOR] Korea Development Bank has selected Samjong KPMG as the lead manager to sell off its entire stake in steel manufacturers Haewon ST and Haewon MSC, according to a report by Korea Economic Daily on Aug. 30.

Samjong will accept letters of intent by Sept. 2 and will name candidates on Aug. 5.

The bank owns 9.05 percent stake (2,730,857 shares) in Haewon ST and 9.13 percent stake (238,760 shares) in Haewon MSC, acquired in 2010 in a debt-equity swap as part of a workout process. 

Korea Developmnet Bank headquarters.

Haewon ST, based in South Jeolla Province, was established in 1996 and manufactures hot- and cold-rolled steel sheets. As of the first half of 2016, its total assets reached 120 billion won (US$107.14 million) with an equity capital of 27.2 billion won. Its operating profit in 2015 was 7.3 billion won and sales came in at 288.2 billion won.

Its subsidiary Haewon MSC was established in 2003 and manufactures zinc coated steel. Its total assets reached 67.7 billion won and equity capital amounted to 40 billion won. Its operating profit in 2015 was 3.2 billion won and turnover was 125 billion won.

Hanyang, a construction company, and its subsidiary Bosung are major stakeholders of both companies, owning a combined 59.6 percent stake in ST and 69.0 percent in MSC.

By Hwang You-mee (glamazon@heraldcorp.com)