[THE INVESTOR] One Korean constructor and two Chinese companies have been shortlisted for the sale of Daewoo Engineering & Construction, the largest shareholder announced on Nov. 24.
Korea’s Hoban Construction, China State Construction Engineering Corp. and Hong Kong-based investment firm PAG Asia Capital were chosen by Korea Development Bank which holds 50.75 percent stake.
KDB earlier this month said that more than 10 bidders had submitted letters of interest to buy the majority stake valued at 1.3 trillion won (US$1.19 billion).
Hoban is a small local construction company while Beijing-based CSCES is a state-owned construction company.
PAG acquired Young Toys known for Tobots for about US$200 million in April 2015 from Asia-focused private equity fund Headland Capital Partners.
Established in 1973, Daewoo E&C was spun off from the ill-fated conglomerate Daewoo Group in 2000 and went through a debt workout program until 2003. Kumho Asiana Group took over the company in 2006 but the cash-strapped conglomerate sold the firm to policy lender KDB in 2010.
KDB plans to sell the stake and management rights by early next year. The deal managers include Bank of America, Merrill Lynch and Mirae Asset Daewoo.
KDB will announce a preferred bidder in January.
By Park Ga-young (firstname.lastname@example.org)