April 20, 2024
Industrials
DSME rushes to sell more non-core assets
[THE INVESTOR] Cash-strapped Daewoo Shipbuilding & Marine Engineering, a major shipyard in South Korea, is accelerating its move to sell its non-core assets to beef up its financial status, industry sources said on March 13.
According to the sources, DSME has recently signed a memorandum of understanding to sell its building in downtown Seoul, a deal valued at some 35 billion won (US$30 million). The shipbuilder also put one of its affiliates up for sale, whose price tag is set at some 18 billion won, with the two cases of asset sales expected to be completed by April, the sources said.
DSME’s efforts to offload its non-core assets came as the shipbuilder is struggling with falling new orders and signs that its financial status is worsening.
Creditors of DSME are reportedly mulling an option to provide additional assistance to the cash-strapped company.
The shipbuilder has been speeding up efforts to sell its non-core assets to tide over its worsening financial situation. So far, it has raised some 1.6 trillion won by selling assets and laying off employees.
The country’s financial authorities are set to announce their stance on the shipyard’s fate this month, and many believe they will opt to save the shipyard from sinking as its demise could have far-reaching consequences on the economy.
By Alex Lee and newswires (alexlee@heraldcorp.com)
According to the sources, DSME has recently signed a memorandum of understanding to sell its building in downtown Seoul, a deal valued at some 35 billion won (US$30 million). The shipbuilder also put one of its affiliates up for sale, whose price tag is set at some 18 billion won, with the two cases of asset sales expected to be completed by April, the sources said.
DSME’s efforts to offload its non-core assets came as the shipbuilder is struggling with falling new orders and signs that its financial status is worsening.
Creditors of DSME are reportedly mulling an option to provide additional assistance to the cash-strapped company.
The shipbuilder has been speeding up efforts to sell its non-core assets to tide over its worsening financial situation. So far, it has raised some 1.6 trillion won by selling assets and laying off employees.
The country’s financial authorities are set to announce their stance on the shipyard’s fate this month, and many believe they will opt to save the shipyard from sinking as its demise could have far-reaching consequences on the economy.
By Alex Lee and newswires (alexlee@heraldcorp.com)
