State-run Korea Development Bank said on Jan. 31 it has chosen Hoban Construction. as a preferred bidder to sell a controlling stake in Daewoo Engineering & Construction.
The decision comes after Hoban Construction, a midsized builder, made a solo bid for the stake earlier this month.
KDB plans to sell a 50.75 percent stake in Daewoo E&C.
Under a deal, Hoban Construction will buy a 40 percent stake in Daewoo E&C and acquire the remaining 10.75 percent stake two years later.
As of 2016, Hoban Construction reported sales of 1.2 trillion won (US$1.12 billion), compared with Daewoo E&C’s 10.9 trillion won.
KDB, a key creditor of Kumho Asiana Group, purchased the stake in Daewoo Engineering in 2010 to help the debt-ridden conglomerate restructure its finances.
By Song Seung-hyun and newswires (email@example.com